© Reuters. Dollar rose on Friday, trading near a 10-day peak
Investing.com – Dollar rose on Friday, trading near a 10-day peak after U.S. consumer prices data on Thursday showed a build-up of inflation pressure that would allow the Fed to raise rates as many as four times this year.
The that tracks the greenback against a basket of currencies was up 0.13% at 94.69 by 1:00AM ET (05:00 GMT).
“The dollar has benefited this week from the trade conflict concerns that emerged earlier, which ended up funneling safe-haven bids into the currency,” said Koji Fukaya, president of FPG Securities in Tokyo.
“On top of that, the U.S. economy has shown it is doing well and Treasury yields have risen, and these factors are all helping the dollar.”
A trade spat between the U.S. and China escalated on Wednesday after Washington threatened to slap 10% tariffs on $200 billion worth of Chinese imports.
The tit-for-tat tariffs have fueled worries that the world’s two largest economies could descend into an all-out trade war, which investors fear could hit global growth.
The pair rose 0.12% to 112.65. The dollar this week has strengthened roughly 2% against the Japanese yen, which normally is bought as a safe haven in times of political tension and market turmoil.
Meanwhile, the pair edged up 0.07% at $0.7413. after data on Friday showed China’s dollar-denominated exports rose a higher-than-expected 11.3% in June from a year earlier.
Elsewhere, the pound slipped to a one-week low as U.S. President Donald Trump warned U.K. Prime Minister Theresa May that her soft Brexit proposal could have an “negative impact” on the trade deal with the U.S.
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