Dollar Recovers as Risk Appetite Declines as Trade Agreement Optimism Fades
Economy News _ Baghdad
The dollar rose on Monday as investors turned to safer assets as they became more cautious about progress toward a comprehensive US-China trade deal.
The dollar fell last week, falling sharply on Friday, as optimism over a trade deal and resumption of talks between Britain and the European Union on a pullout from the bloc pushed investors towards riskier assets.
US President Donald Trump said on Friday that Washington and Beijing had reached the "first stage" of a trade deal.
But the US currency rebounded on Monday as investors took a slightly cautious turn.
The euro was down 0.2 percent at $ 1.1014, while the dollar was up against a basket of currencies, up 0.2 percent, with its index at 98.517.
But the US currency fell against the Japanese yen. The yen is considered a safe-haven currency, and its rapid recovery from a two-and-a-half-month low touched on Friday signals investor concern about optimism about Monday's trade deal.
The yen was up 0.2 percent in late trade to 108.25.
Most emerging market currencies were lower on Monday, with the Australian dollar only 0.3 percent to $ 0.6770.
The Swedish krona fell 0.3 percent against the euro to 10.847.
Sterling fell in early London trade, falling more than 0.5 percent against both the dollar and the euro, after Britain and the European Union recently stressed that there is a long way to go before they can conclude an exit deal.