The US dollar is trading at nearly its lowest point in two weeks, after Chinese President Xi Jinping promised to cut import tariffs, easing concerns about a US-China trade confrontation. Meanwhile, sterling continues to rally, hitting a two-week high to trade at $1.42.
The dollar dropped against a basket of six major currencies, down to 89.58, edging closer to 89.54, its lowest level since 28 March. The currency fell 0.3 per cent against the euro, closing at $1.23. The Japanese yen remained steady at 107.05 yen to the dollar, pairing some of the 0.4 percent fall it saw yesterday.
Meanwhile the pound has rallied over 1.5 percent in the last three days. If it continues to strengthen it could be on track to brush past its 2018 high of $1.43 which it hit in late January. April tends to be a particularly strong month for the British currency.
The hardest hit currency continues to be the Russian rouble, which fell for a third straight day this morning. The Russian currency fell 1.77 per cent as US sanctions continue to hurt the country’s economy. Two more directors also announced they were leaving aluminium giant Rusal this morning.
The Canadian dollar is trading at CA$1.26 to the US dollar. Yesterday, the Canadian currency hit a seven-week high of CA$1.25, helped by higher oil prices and the easing concerns about the US-China trade row.