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Foreign Exchange

Date: May 22, 2019

The dollar largely kept to familiar trading ranges on Wednesday, as it found support near a 3-1/2-week high on higher U.S. yields after the United States eased trade restrictions on Chinese telecommunications equipment maker Huawei Technologies.

 
 

Against the yen, the dollar was largely steady at 110.49 yen, after hitting a two-week high of 110.675 during the previous session. The greenback has recovered 1.4% from a three-month trough of 109.02 yen touched on May 13.

 

Japan’s exports fell 2.4% in April from a year earlier, down for a fifth straight month, in a sign of weakness in external demand, finance ministry data showed. That was more than the 1.8% decrease expected by economists in a Reuters poll.

 

Sterling fell below $1.27 for the first time since mid-January, battered by dollar strength and growing fears that UK Prime Minister Theresa May will fail to persuade cabinet colleagues to back an amended version of her EU withdrawal deal.

 

Brexit uncertainty has grown in recent weeks after the breakdown of talks between May and the opposition Labour party. That has set the stage for the thrice-rejected fail to fail again if, as planned, it is put to vote in parliament next month.

 

Sterling inched away from its weakest levels since January on Monday as Britain’s prime minister made a last-ditch bid to get a Brexit deal through parliament before she leaves office, though scepticism from the opposition Labour Party capped gains.

 

The U.S. dollar was higher against the euro and the yen on Tuesday in a day of risk-on trades after U.S. President Donald Trump temporarily eased curbs on China’s Huawei Technologies Co Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

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