© Reuters. Dollar eases, still supported near 14-month highs
Investing.com – The dollar eased against a basket of the other major currencies on Thursday, but was supported near 14-month highs amid ongoing concerns over Turkey’s currency crisis and fears of an economic slowdown in China.
The , which measures the greenback’s strength against a basket of six major currencies, hit an overnight low of 96.28 and was down 0.14% to 96.45 by 04:22 AM ET (08:22 AM GMT). The index hit a high of 96.76 on Wednesday, the most since June 27, 2017.
Demand for the greenback continued to be underpinned by concerns over the rout in the Turkish lira, which plunged to record lows at the start of the week.
Deteriorating relations between the U.S. and Ankara and worries about Turkish President Tayyip Erdogan’s increasing control over monetary policy and the economy have seen the lira tumble more than 40% this year.
The has recovered somewhat since its selloff earlier in the week and was higher for a third day on Thursday after news that of investment.
Geopolitical risks remained to the fore however, with heightened tensions between U.S. and Ankara likely to nudge Turkey closer to countries like Russia, China and Iran.
Markets were encouraged by reports that the U.S and China are to hold later this month, amid an ongoing trade spat between the world’s two largest economies.
The safe haven yen was little changed against the dollar, with at 110.78.
The euro pulled away from Wednesday’s 14-month lows, with advancing 0.28% to 1.1378.
The single currency has been pressured lower by fears over the exposure of European banks to Turkey.
The pound was little changed near a 13-month trough, with at 1.2703.
The risk sensitive commodity currencies were higher, with climbing 0.39% to 0.7266 and up 0.29% to 0.6582.
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