New York: The US dollar stabilized on Wednesday after recording its largest drop in more than three weeks overnight. The decline followed lower-than-expected US consumer inflation data, bolstering the case for Federal Reserve easing just as global trade tensions cool, coinciding with a de-escalation in the US-China trade tensions.
According to Qatar News Agency, the US Dollar Index, which measures the currency against six major peers, held steady at 100.94 after falling 0.8% on Tuesday. On Monday, the index jumped 1%, reaching its highest level in a month, supported by optimism that the easing of trade tensions between the US and China would avert a potential global recession.
Against the Japanese yen, the dollar was stable at 147.45 yen, while the euro and the British pound showed little change, trading at $1.1188 and $1.3311, respectively. The dollar rose 0.24% to 7.2122 against the Chinese yuan in offshore markets, rebounding from a six-month low of 7.1791 yuan reached yesterday. Meanwhile, it edged down 0.1% against the Swiss franc to 0.8384.
The dollar index remains down by about 3% compared to its level on April 2, when former US President Donald Trump announced broad tariffs that prompted foreign investors to reduce their exposure to US assets.