U.S. dollar softens as risk appetite grows

Source: Xinhua| 2019-02-26 07:06:16|Editor: Li Xia
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NEW YORK, Feb. 25 (Xinhua) -- The U.S. dollar fell in late trading on Monday amid investors' rising risk appetite.

The dollar index, which measures the greenback against six major peers, fell 0.10 percent at 96.4125 in late trading.

Investors showed rising optimism that China and the United States could finally reach a deal on trade and avoid escalations of tariffs imposed on each other.

An extension of the tariff freeze that was supposed to end on March 1 was widely expected, but the confirmation late yesterday was one of the most important developments, said Marc Chandler, chief market strategist at Bannockburn Global Forex.

Still, emerging market currencies remain vulnerable to tighter global liquidity, growth and trade worries, and related risk sentiment, according to a research note by UBS AG issued on Monday.

"We expect only a small positive total return with emerging market currencies over a six-month horizon," said the report.

In late New York trading, the euro was up to 1.1364 dollars from 1.1338 dollars in the previous session, and the British pound rose to 1.3102 dollars from 1.3060 U.S. dollars in the previous session. The Australian dollar rose to 0.7175 dollar from 0.7133 dollar.

The U.S. dollar bought 111.13 Japanese yen, higher than 110.69 Japanese yen of the previous session. The U.S. dollar increased to 1.0002 Swiss francs from 1.0001 Swiss francs, and it was up to 1.3193 Canadian dollars from 1.3138 Canadian dollars.