© Reuters. The U.S. dollar was a touch higher on Friday.
Investing.com – The dollar was higher on Friday as the yield on U.S. Treasury notes rose to February levels and interest rate expectations offset trade war worries.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.27% to 89.88 by 5:13 AM ET (9:13 GMT).
U.S. bond yields crept back up on Friday, with the note climbing to its highest level since September 2008, at 2.437. The yield on the Treasury note rose to 2.916.
Prices fall as bond yields rise. A spike in U.S. Treasury bond yields in February led to a steep decline in equity markets, as investors flocked to the dollar in anticipation that inflation could lead to an increase in interest rate hikes by the Federal Reserve.
The dollar has been weighed down in recent months by U.S. President Donald Trump’s trade policies. China’s ambassador to the U.S. that if the White House continues to initiate a trade war, China would retaliate.
The dollar gained ground against the yen, with rising 0.23% to 107.60. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.
The pound was lower amid , as investors grow uncertain of a rate hike in May. fell 0.25% to 1.4052.
The euro was down, with falling 0.30% to 1.2308 as investors worry that the euro zone’s economy is rebounding and the European Central Bank could wait to tighten monetary policy.
Elsewhere, the Australian dollar was lower, with down 0.44% to 0.7694 while decreased 0.69% to 0.7221.
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