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Dollar Gains Against Major Rivals

Dollar Gains Against Major Rivals

The U.S. dollar gained against most major currencies on Monday amid easing worries about trade war following comments from key officials in the Trump administration denying reports of limiting some U.S. investments in China.

The denial came after reports suggested last week that the U.S. government was considering plans to delist Chinese companies from U.S. stock exchanges and limit U.S. investors’ portfolio flows into China.

Treasury Department spokeswoman Monica Crowley denied reports the Trump administration is considering delisting Chinese companies from U.S. stock exchanges.

“The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time. We welcome investment in the United States,” she said in a statement.

Crowley’s statement comes on the heels of reports suggesting the administration is contemplating ways to curb U.S. investments in China.

Meanwhile, White House trade adviser Peter Navarro attacked the media reports in an interview with CNBC on Monday, claiming “over half” of a Bloomberg report about potential restrictions was “highly inaccurate or simply flat-out false.”

The dollar index, which rose to 99.46, was last seen at 99.41, up 0.3% from previous close.

Against the euro, the dollar strengthened to 1.0887 before paring some gains as it eased to 1.0902, still up by a notable margin of about 0.37% from Friday’s close.

Eurozone unemployment rate unexpectedly dropped in August to its lowest level in more than a decade, preliminary data from Eurostat showed on Monday.

The seasonally adjusted unemployment rate fell to 7.4% from 7.5% in July. Economists had expected the rate to remain unchanged.

The latest unemployment rate was the lowest since May 2008, Eurostat said. In August 2018, the jobless rate was 8%.

Against pound sterling, the dollar was little changed at 1.2294, after having recovered to 1.2275 earlier from a low of 1.2345 a unit of sterling.

The Japanese yen was down 0.16% at 108.10 a dollar, compared to 107.93 yen a dollar late Friday.

The yen weakened after preliminary data from the Ministry of Economy, Trade and Industry showed that Japan’s industrial production declined at a faster-than-expected rate in August.

Industrial production fell 1.2% month-on-month in August. Economists had expected a fall of 0.5%.

The Aussie was down 0.21% against the greenback with the Aussie-Dollar pair trading at 0.6750.

Against the loonie, the dollar was down marginally at 1.3245, and against Swiss franc, it gained about 0.7% at 0.9979.

Chicago-area business activity unexpectedly returned to contraction in the month of September, according to a report released by MNI Indicators on Monday.

MNI Indicators said its Chicago business barometer slumped to 47.1 in September after rebounding to 50.4 in August. A reading below 50 indicates a contraction in Chicago-area business activity.

The index indicated a contraction for the third time in four months, while economists had expected a much more modest decrease to a reading of 50.2.

The production index led the way lower, plunging by 7.6 points to 40.4 in September, hitting its lowest level since May of 2009. The new orders index also tumbled by 7.6 points or 48.5.

The material has been provided by InstaForex Company – www.instaforex.com