ANL 34.32 Decreased By ▼ -0.20 (-0.58%)
ASC 14.85 Decreased By ▼ -0.31 (-2.04%)
ASL 24.50 Decreased By ▼ -0.33 (-1.33%)
AVN 90.24 Decreased By ▼ -4.76 (-5.01%)
BOP 7.79 Decreased By ▼ -0.08 (-1.02%)
BYCO 10.05 Decreased By ▼ -0.26 (-2.52%)
DGKC 124.20 Decreased By ▼ -2.40 (-1.9%)
EPCL 56.30 Decreased By ▼ -0.86 (-1.5%)
FCCL 24.31 Decreased By ▼ -0.19 (-0.78%)
FFBL 27.60 Decreased By ▼ -0.36 (-1.29%)
FFL 16.05 Increased By ▲ 0.01 (0.06%)
HASCOL 9.74 Decreased By ▼ -0.28 (-2.79%)
HUBC 80.00 No Change ▼ 0.00 (0%)
HUMNL 6.44 Decreased By ▼ -0.01 (-0.16%)
JSCL 20.50 Increased By ▲ 0.09 (0.44%)
KAPCO 40.21 Decreased By ▼ -0.73 (-1.78%)
KEL 3.85 Decreased By ▼ -0.02 (-0.52%)
LOTCHEM 16.25 Decreased By ▼ -0.99 (-5.74%)
MLCF 46.60 Decreased By ▼ -0.31 (-0.66%)
PAEL 35.10 Decreased By ▼ -1.07 (-2.96%)
PIBTL 10.33 Decreased By ▼ -0.16 (-1.53%)
POWER 9.25 Decreased By ▼ -0.10 (-1.07%)
PPL 85.50 Decreased By ▼ -0.24 (-0.28%)
PRL 25.01 Decreased By ▼ -0.70 (-2.72%)
PTC 9.55 Increased By ▲ 0.10 (1.06%)
SILK 1.24 Increased By ▲ 0.07 (5.98%)
SNGP 38.82 Decreased By ▼ -0.54 (-1.37%)
TRG 167.40 Increased By ▲ 7.79 (4.88%)
UNITY 30.65 Decreased By ▼ -0.10 (-0.33%)
WTL 1.53 Increased By ▲ 0.10 (6.99%)
BR100 4,820 Decreased By ▼ -31.91 (-0.66%)
BR30 25,669 Decreased By ▼ -2.82 (-0.01%)
KSE100 44,978 Decreased By ▼ -208.43 (-0.46%)
KSE30 18,443 Decreased By ▼ -42.02 (-0.23%)

Coronavirus
VERY HIGH
Pakistan Deaths
15,501
5824hr
Pakistan Cases
725,602
458424hr
Sindh
269,126
Punjab
250,459
Balochistan
20,321
Islamabad
66,380
KPK
99,595
Markets

Dollar falls 0.6pc on U.S.-China deal reports

The U.S.-China trade war looked set to de-escalate after U.S. sources said Washington had set out its terms for a t
13 Dec 2019
  • The U.S.-China trade war looked set to de-escalate after U.S. sources said Washington had set out its terms for a trade deal.
  • Nguyen said she expected the yuan to appreciate to below 6.9 - at least temporarily - when a trade deal is signed.
  • The euro was up 0.4pc against the dollar, having hit a four-month high in overnight trading before paring gains .

The dollar fell more than half a percent on Friday, with global risk appetite boosted by the apparent clearing of two clouds that have been hanging over world markets -- U.S.-China tariffs due on Dec. 15 and Britain's election.

The U.S.-China trade war looked set to de-escalate after U.S. sources said Washington had set out its terms for a trade deal, offering to suspend some of the new wave of tariffs due on Sunday and to cut others.

The Japanese yen fell 0.3pc and is approaching its lowest versus the dollar in more than six months as demand for the safe-haven currency went down.

The dollar index was down 0.6pc.

After 17 months of market-moving comments from both the U.S. and China sides of the trade war, some uncertainty remains and traders will be waiting until the Dec. 15 deadline has passed before fully boosting risk appetite.

"Only if it's actually signed and it's really official then the market will fully price it in," said Commerzbank FX strategist Thu Lan Nguyen.

Although the offshore yuan was initially boosted on trade deal hopes, it was down 0.6pc versus the dollar in early London trading, partially erasing the previous day's gains.

Nguyen said she expected the yuan to appreciate to below 6.9 - at least temporarily - when a trade deal is signed.

Meanwhile, European currencies were boosted by the market-friendly results of Britain's election, which delivered a bigger-than-expected parliamentary majority for Prime Minister Boris Johnson's pro-Brexit Conservative party.

The euro was up 0.4pc against the dollar, having hit a four-month high in overnight trading before paring gains .

The pound sterling rose as much as $1.3516 versus the dollar  and 82.78 pence per euro after an exit poll suggested the Conservatives would win an outright majority.

With results still coming in, the Conservatives look set to win their best result since 1987.

Markets consider that this result paves the way for Britain to negotiate its departure from the European Union. But, with a trade deal deadline of December 2020, the uncertainty is far from over.

"There is a risk of some disappointment if businesses continue to hold back on spending until they have more clarity on the future trading relationship," currency analysts at MUFG wrote in a note to clients.