The Dollar stumbled near a three-week low against peers on Thursday as U.S Treasury yields fell sharply, while the Euro’s recovery remained intact amid expectations that the European Central Bank would begin unwinding its stimulus program.
The U.S. Dollar index, which measures the strength of the U.S. Dollar versus a group of six other major currencies, dropped by 0.16 percent to end the session at 93.42, The index has fallen 0.75 percent this week and touched 93.213 on Thursday, its lowest since 17th, May.
The Greenback has come under pressure this week as the Euro rebounded back from 10-month lows effected by relaxing the Italian political concerns and speculation that an ECB could signal intentions to start unwinding its big stimulus program when it holds a policy meeting on June 14.
The greenback was dragged further down as U.S. Treasury yields fell sharply on Thursday on the back of receding risk appetite in the broader markets.
President Donald Trump is set to meet North Korean leader Kim Jong Un on June 12 in Singapore. The main issue for the summit is the U.S. demand for North Korea to abandon a nuclear weapons program that now threatens the United States.
The Euro climbed to a three-week peak on Thursday as expectations mounted that the European Central Bank will signal an early wind-down of economic stimulus, the EURUSD rose by 0.2 percent to trade 1.1797 at the close.
The ECB, at its policy meeting next week, will debate whether to end bond purchases later this year, its chief economist, Peter Praet, a close ally of ECB President Mario Draghi, said on Wednesday. Other ECB officials echoed Praet’s sentiment.
Meanwhile, in the United Kingdom, The Sterling strengthened against the U.S. Dollar, rising by 0.1 percent to end Thursday’s session at 1.3421.
Regarding the safe-haven assets, the Japanese Yen strengthened against the Greenback on Thursday, the USDJPY dropped by 0.43 percent to close at 109.69, while the Swiss Franc gained against the Greenback, the USDCHF fell by 0.6 percent to trade 0.9803 at the close.
Meanwhile, Gold stayed untouched against the Greenback on Thursday; the XAUUSD ended the session at 1296.95 U.S. Dollars per ounce.
The Canadian dollar weakened against its U.S. counterpart on Thursday as voters in Ontario headed to the polls and after the Bank of Canada fretted about a more uncertain trade outlook. Trade uncertainty feels riskier than it did in April, the head of the Bank of Canada said, noting the impact of U.S. tariffs on aluminum and steel imports will be incorporated into updated economic forecasts next month. Ontario voters were voting on Thursday in an election all but sure to end 15 years of Liberal rule in Canada’s most populous province, with Doug Ford’s Progressive Conservative Party leading in opinion polls. The USDCAD rose by 0.2 percent to trade 1.2970 at the close.
Regarding the U.S. Crude Oil prices, Oil July rose by 1 percent on Thursday, to trade at 65.93 U.S. Dollars per barrel at the close.
Over in Australia and New Zealand, The Australian Dollar dropped by 0.52 percent on Thursday to trade at 0.7625 at the close, and the New Zealand Dollar fell by 0.1 percent to end the session at 0.7026.