Dollar, Phase-one deal, Japanese Yen, and Others

The dollar rose 0.75% to 109.35 against the Japanese Yen.

The United States and China reached an agreement in principle.

After the ECB meeting, the euro is flat. And as voting gets underway, sterling eases.

On Thursday, against the safe-haven Japanese yen, the dollar jumped to a near two-week high. It has largely moved on news that the US reached a deal in principle with China.

It’s now just days before the U.S. tariffs supposed implementation on Chinese goods.

A phase-one trade deal is close to a conclusion in principle between China and the United States. The White House statement will come soon, as the source, briefed on talks between the two nations, says.

The report came after the United States President Donald Trump said from the earlier session that the United States is very close to having a deal with China.

It tends to draw investors during the times of financial or geopolitical stress as Japan is the biggest creditor nation in the world. This index is highest since December 2.

Dollar

The dollar fell 1.06% to a one-month low against the offshore Chinese yuan.

An FX strategist at UBS in New York, Vassili Sereiakov, said they had seen a robust risk-on reaction in the forex market.

All the attention of the investors was on the U.S.-China phase one trade talks. They wanted to see if the United States would impose tariffs on $160 billion worth of Chinese goods by December 15.

The dollar is up against six major currencies by 0.3%.

After the dollar lost strength on Wednesday when the Fed reserve held interest rates steady, they said a persistent, significant rise in inflation is a must if they were going to hike rates again. Nevertheless, on Thursday, the dollar reclaimed its strength.

Against the dollar, the euro was 0.11% lower after the ECB maintained its ultra-easy monetary policy on Thursday at Christine Lagarde’s first meeting in charge.