The US Dollar has mostly stabilized vs the majors in the middle of the week on lower risk-off demand driven by growing US-China trade tensions. However, the currencies have remained under pressure of the conflict.
On Wednesday morning the US Dollar index was recorded at 94.80. The rate reached almost a year high yesterday following the statement of Donald Trump about the possible launch of new import duties on the Chinese products. At the same time, China expressed readiness for countermeasures. In this situation, demand for risk aversion soared entailing selloffs.
The euro decreased against the greenback to some 1.1568. A few days earlier, the rate hit the bottom at 1.1528 driven by the message of ECB's Chairman Mario Draghi. For reference, Draghi stated that the Central Bank would tighten its monetary policy step-by-step.
The US dollar strengthened in the pair with the yen reaching some 110.16. At the same time, it dropped to 109.55 just a day before.
Australian dollar rate highly depends on China's issue. As a result, the currency slightly recovered to $0.7406.
The sterling changed hands near $1.3156 in view of coming meeting of BOE slated for June 21.