High-risk currencies are supported by progress on trade with China
Economy News _ Baghdad
Strong currencies linked to global trade rose on Friday, supported by news of US and Chinese negotiators agreeing to boost cooperation on a trade deal as more and more governments reopen their economies at a slow pace.
Senior trade representatives from the United States and China discussed the one-stage agreement between the two countries on Friday, while China said it had agreed to improve the atmosphere for implementation of the agreement and the United States said the two sides believed that commitments would be fulfilled.
The phone conversation came in light of escalating tensions between the two countries, which was exacerbated by the United States 'criticism of China' s response to the outbreak of the new Corona virus.
The Australian dollar, which is closely related to sentiment towards China and the global economy, rose 0.3 percent to 0.6516 US dollars, after hitting earlier a week's high.
The currencies of a number of emerging markets also rose.
The US dollar suffered in search of a trend as investors challenged a widespread sense of pessimism about upcoming US employment data and focused on trade news and the gradual lifting of public isolation measures.
What undermined the American currency was its damaged yield again, at a time when money markets are considering a low probability of negative interest rates this year.
The dollar index, which tracks the performance of the greenback versus a basket of six major currencies, was unchanged at 99.851.
The dollar’s decline against higher-risk currencies indicates a recovery in risk appetite with the rise in global stocks, and the Nasdaq index has now erased its losses incurred since the beginning of this year.
In addition to significant monetary easing around the world, hopes for a return to economic conditions support sentiment.
The euro fell 0.1 percent to $ 1.0823, but held close to the lowest level in two weeks, which recorded on Thursday at 1.07665, although it fell more than one percent per week.
Against the yen, the dollar rose to 106.32 yen, above a seven-week low that it touched on Wednesday.