On Tuesday the value of the dollar rebounded from its lowest level in more than a week. The rate began to rise on signals about the reduction of tensions in international trade which caused an increase in the Treasury yield above 3%.
The dollar index, which tracks t the strength of the dollar against a basket of six currencies, the main trading partners of the United States, rose 0.04% to 92.60.
The US currency found support as the yield on 10-year U.S. Treasury notes ticked up to 3.025%, the highest level in three weeks. A rise above the high of 3.035% would take it to its highest in three and a half years.
U.S. Treasury yields were boosted by easing trade tensions between the U.S. and China after Donald Trump pledged to help Chinese technology company ZTE to resume work.
In April, the White House barred U.S. companies from selling software and electronic components to ZTE which practically stopped the work of the company.
The dollar rate hit four-and-a-half month highs against a currency basket last week. Then the currency lost momentum after tame U.S. inflation data tempered expectations for more stringent monetary policy by the US Federal Reserve this year.
The regulator raised rates last March and projected two more rate hikes this year, although many investors had seen three hikes as possible.
Investors were looking ahead to data on U.S. retail sales to assess the situation in the US economy.
The dollar rose 0.22% against the yen to 109.89. The euro was almost unchanged, holding at 1.1926.
The euro touched the day’s highs on Monday after European Central Bank policymaker Francois Villeroy de Galhau said that the European regulator expects a rate hike near the end of the QE program.
The pound was steady, with GBP/USD at 1.3550, ahead of the latest UK jobs report.
The Australian dollar was lower, with AUD/USD sliding 0.11% to 0.7517. The NZD/USD pair was trading at 0.6910.
