Dollar Eases after 4-Week RallyTokyo, May 19 (ONA) — The US dollar today trimmed its gains at the start of Asian trading, following a four-week rally, as markets digested the surprise downgrade of the US government’s credit rating, while persistent trade tensions weighed on investor sentiment.
Last week, the dollar had climbed 0.6% against a basket of major currencies, buoyed by easing fears of a global recession after a temporary trade truce was reached between the United States and China. However, recent economic data pointed to rising import prices and declining consumer confidence, dampening optimism.
The greenback fell 0.3% to 145.22 yen, and slipped 0.2% against the Swiss franc, another traditional safe-haven asset.
Meanwhile, the Australian dollar rose 0.1% to $0.6409, recovering slightly after three consecutive days of losses. Markets are pricing in a 25-basis-point rate cut by the Reserve Bank of Australia, which currently holds the cash rate at 4.10%, ahead of its policy decision tomorrow (Tuesday).
The euro held steady at $1.1185, up 0.2%, while the British pound traded at $1.3299, gaining 0.1%.
The New Zealand dollar also edged higher by 0.1%, reaching $0.5888.— Ends/Khalid