The dollar fell across the board on Friday, as the latest comments by U.S. President Donald Trump complaining about the strength of the greenback and the rise in U.S. interest rates squashed a rally that took it to a one-year high the previous session. The U.S. currency extended losses in afternoon trading after CNBC reported that Trump was worried the Federal Reserve will raise interest rates twice more this year. The dollar index, a measure of its value against a basket of six major currencies, erased three days of gains. ...

A slump in risk assets caused by the decline in China’s yuan could soon turn to boom should the People’s Bank of China shift toward stimulus mode in the world’s no. 2 economy, according to Nomura Holdings Inc. “As Chinese financial conditions further deteriorate and market stress worsens, we actually perversely push closer to the risk-asset positive outcome of escalated PBOC stimulus and easing measures,” said Charlie McElligott, a strategist with Nomura’s equities group, in a note to clients Thursday. “Essentially, we are nearing the pain-point of the ‘PBOC Put.’” ...

The dollar fell from a one-year peak on Thursday after U.S. President Donald Trump expressed concern about a strong currency, which he said puts the United States at a disadvantage. The greenback also gave back some of its gains against the Chinese yuan, which had earlier dropped to a one-year low against the dollar. In an interview with CNBC, Trump said a strong dollar “puts us at a disadvantage,” adding that the Chinese yuan “has been dropping like a rock.” A strong currency tends to make a country’s exports more ...

Don’t be fooled as Asian currency swings seemed to be impervious amid an uptick in volatility in its global emerging-market peers this month. Cushioned by current-account surpluses across most of the region and by China’s pledge this month of a stable yuan, the average three-month implied volatility for Asian currencies dropped 23 basis points this month, according to data compiled by Bloomberg. That contrasts with volatility for the wider emerging-market universe, which has climbed 4 basis points amid the twists and turns of the U.S.-China trade fight. “Indeed, the calm ...

The pound extended this week’s decline to drop below $1.30 as a slowdown in U.K. retail sales cast doubt on the argument for an interest-rate hike. Sterling touched a 10-month low as the weak spending followed disappointing inflation data and a tumultuous week of politics. Money-market pricing for a Bank of England rate move next month has slipped to 78 percent, from 84 percent on Tuesday. “Pound suffers on the back of the data with cable below $1.30 but that reading should not be weak enough in order to drive ...

The dollar retreated from a three-week high on Wednesday as investors cashed in on gains the currency made after two days of testimony by U.S. Federal Reserve Chairman Jerome Powell reinforced a strong economic outlook. In congressional testimony on Tuesday and Wednesday Powell said he believed the United States was on course for years more of steady growth, and played down the risks to the U.S. economy of an escalating trade conflict. Against a basket of six major currencies, the dollar rose to a three-week high of 95.4 before settling ...

China will tolerate higher volatility in the yuan and a moderate weakening of the currency, according to Pacific Investment Management Co. As long as the moves are driven by fundamental factors, the central bank is unlikely to defend the yuan at a particular level, according to Isaac Meng, an emerging market portfolio manager at Pimco in Hong Kong. Officials are more comfortable with swings in the currency and foreign funds have been boosting investment in onshore bonds, while domestic households already hold significant assets overseas, he wrote in a blog. ...

The dollar rose on Tuesday as Federal Reserve Chairman Jerome Powell provided an upbeat assessment on the U.S. economy while downplaying the impact of current global trade policy discussions on the outlook for further monetary tightening. Following Powell’s remarks, the dollar rose to a six-month high against the yen. Investors were watching Powell’s comments on global trade for any hint that it may slow the pace of interest rate increases. When Powell did not dwell on global trade, analysts said that was a green light to buy U.S. dollars. In ...

The pound fell on Monday as a debate in Britain’s parliament exposed the level of dissatisfaction within British Prime Minister Theresa May’s governing Conservative Party over her plans for Brexit. The pound fell to an intraday low of $1.3223 on news that May had bowed to pressure from Brexit supporters and accepted their changes to a customs bill that underpins Britain’s exit from the EU. “The move in sterling is pretty contained at this point but this [accepting of amendments] is being viewed by the market as a step towards ...

Theresa May’s Brexit blueprint has given pound bulls some much-needed comfort. The U.K. prime minister’s push for a so-called soft Brexit, which envisions maintaining a close economic partnership with the European Union, is good for sterling, according to Deutsche Bank AG. The prospect of an interest-rate increase as early as August by the Bank of England will add support for the British currency, said Oliver Harvey, a strategist in London at the German bank. Even as sterling fumbles for a clear heading not far from an eight-month low, Deutsche Bank ...

The dollar dipped against a basket of currencies on Friday, fading from a two-week peak which was tied to news of a record Chinese trade surplus that may fuel U.S.-China trade tensions and that briefly spurred safe-haven bids for the greenback. The dollar’s pullback likely stemmed from modest gains on Wall Street and a drop-off in trading volume before the weekend, analysts said. “The U.S. dollar has been moving inversely with stocks. They could have restrained the dollar somewhat,” said Eric Viloria, currency strategist at Wells Fargo Securities in New ...

The dollar climbed for a fifth straight day on Friday, with a key dollar index reaching a two-week high as bombshell comments from President Donald Trump sparked renewed turmoil for the pound. Sterling slumped to $1.3130 from $1.3206 late Thursday in New York, falling to its lowest dollar level since late June. The slide in the pound helped propel the ICE U.S. Dollar Index higher, with the index up 0.4% and trading around its highest level since June 29, according to FactSet data. For the week, the dollar benchmark was ...

Foreign-exchange traders are struggling to know which way to lean when it comes to betting on the escalating global trade war. While the U.S. and China have been exchanging blows over tariffs in recent weeks, swings in major developed-market currencies have remained muted, and opinion is divided about what might constitute a haven if tensions escalate. Measures of realized volatility are close to the lows for the year and well below where they were during Italy’s recent political crisis. That may also be acting as a drag on option-implied volatility. ...

The euro fell to a eight-day low on Friday as U.S. inflation numbers boosted interest rate expectations and an easing in trade tensions between the United States and China supported the dollar. U.S. President Donald Trump’s comments on Britain’s Brexit plan killing hopes of a U.S. trade deal also knocked sterling lower, pushing the dollar up across the board. U.S. consumer prices data on Thursday showed a steady buildup of inflation pressure that could allow the Federal Reserve to raise interest rates as many as four times in 2018. While ...

One might be forgiven for thinking the yen would be a beneficiary of the recent turmoil in markets — the escalation of the trade war triggering a Pavlovian response luring traders to its safe-haven status. Not this time. Since the start of July, the Japanese currency has been the weakest of its Group-of-10 peers. TD Securities LLC had to close out a bullish trade call stemming from the haven rationale, accepting a loss after the yen fell past 112.10 per dollar to its weakest since early January. “We initiated this ...