The dollar index against major currencies was at 97.936, after rising 0.37 per cent yesterday to 97.912. ― Reuters pic
TOKYO, Nov 6 ― The dollar held the upper hand against its rivals today, particularly versus traditional safe-haven currencies, on rising hopes for a US-China trade deal and a string of solid US economic data.
The dollar index against major currencies was at 97.936, after rising 0.37 per cent yesterday to 97.912.
Against the yen, the dollar traded at ¥109.16 (RM4.13), down 0.01 per cent from late US levels but near its October high of 109.285 and a three-month high of 109.25 hit on October 30.
The Swiss franc changed hands at 0.9930 to the dollar following its 0.5 per cent fall the previous day, while gold tumbled 1.73 per cent yesterday and last stood at US$1,484.1 per ounce, near the lower end of its trading range over the past month.
The euro stood at US$1.1075, having dropped 0.49 per cent yesterday and was not far from a near three-week low of US$1.10635 hit in US trade.
Hopes that the Trump administration could roll back some of tariffs it has imposed on goods from China as a part of a “phase one” US-China trade deal boosted risk sentiment in financial markets.
A survey on the vast US service sector published yesterday showed the business sentiment has improved in October from a three-year low in September.
The ISM non-manufacturing sector index rose to 54.7 from 52.6 in September, beating market expectations.
The rebound is a welcome sign for dollar bulls as a fall in the index would have suggested that malaise in trade war-hit manufacturers was infecting the service sector, too.
The data came after strong US employment data on Friday.
“On top of Sino-US trade issues, the market is reacting to signs of US economic strength at the moment,” said Kyosuke Suzuki, director of foreign exchange at Societe Generale.
The positive mood spilled over to the risk-sensitive Australian dollar, which changed hands at US$0.6894. It was little changed on the day but has maintained gains of 3.4 per cent since hitting a 10-1/2-year low on October 2.
The offshore yuan traded at 7.0005 yuan per dollar, after having risen to three-month high of 6.9867 to the dollar yesterday on rising trade deal hopes.
The currency has gained 2.8 per cent from its record low in the offshore trade marked in early September. ― Reuters