Forex – U.S. Dollar Flat as Yen Rebounds

© Reuters. – The greenback was flat on Monday and the safe haven yen rose, after an unexpectedly sharp fall in China’s exports increased worries over the health of the global economy.

The , which measures the greenback’s strength against a basket of six major currencies, inched down 0.07% to 95.20 as of 10:25 AM ET (15:25 GMT), while slipped 0.26% to 108.24.

Chinese exports fell by the most in two years in December, while imports also declined. The numbers increased worry that new U.S. tariffs on Chinese goods are hurting China’s economy. Separately, data also showed that China had its biggest-ever trade surplus with the U.S. last year, which could hurt ongoing trade negotiations with the White House.

The dollar has fallen in recent weeks, on increasing expectations that the Federal Reserve will hold off from further interest rate hikes for now. Fed Chairman Jerome Powell reiterated last week that the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable.

Elsewhere, sterling recovered slightly after reports that UK Prime Minister Theresa May was preparing a fresh attempt to get support for her Brexit deal from rebels in her party, by trying to limit the time that the UK will have to stay in line with EU regulations after it leaves the bloc. She is still expected to lose a key vote in parliament on the deal scheduled for Tuesday.

inched up 0.15% to 1.2859.

The euro was mostly flat, with at 1.1463.

The risk-sensitive Australian and New Zealand dollars, with falling 0.2% to 0.7199 and down 0.1% to 0.6822.

Both currencies had gained around 1.5% versus the dollar last week as risk sentiment improved on hopes for both a U.S.-Sino trade deal and more aggressive stimulus from Chinese policymakers to support its ailing economy.

-Reuters contributed to this report.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.