US dollar rallies amid eased trade worries

New York: The US dollar index rose against most other major currencies as market nerves about trade tensions between China and the US were calmed after US officials said both countries could negotiate.

White House economic adviser Larry Kudlow said on Thursday he expects the US and China to work out their trade differences over time and that trade barriers likely “will come down on both sides,” according to CNBC.

In late New York trading on Thursday, the euro fell to $1.2236 from $1.2281 in the previous session, and the British pound decreased to $1.4001 from $1.4074 in the previous session, Xinhua news agency reported.

The Australian dollar was down to $0.7682 from $0.7707.

The US dollar bought 107.44 Japanese yen, higher than 106.74 Japanese yen of the previous session. The US dollar was up to 0.9635 Swiss franc from 0.9605 Swiss franc, and it dipped to 1.2761 Canadian dollars from 1.2791 Canadian dollars.

China on Wednesday unveiled a list of products worth $50 billion imported from the US that will be subject to higher tariffs, including soy bean, automobiles and chemical products.

The move was taken after the US administration announced a proposed list of products subject to additional tariffs, which covers Chinese exports worth $50 billion with a suggested tariff rate of 25 per cent.

On the economic front, US Labor Department said on Thursday that in the week ending March 31, the advance figure for seasonally adjusted initial jobless claims was 242,000, an increase of 24,000 from the previous week’s revised level, higher than market expectations.

The four-week moving average was 228,250, an increase of 3,000 from the previous week’s revised average.

The dollar index, which measures the greenback against six major peers, increased 0.36 per cent at 90.468 in late trading.