U.S. Dollar Rises on Huawei, Trade Relief


The U.S. dollar rose Tuesday, hitting a three-week high as investor tension eased after the U.S. removed some restrictions on Chinese tech giant Huawei.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.2% to 97.922 as of 10:32 AM ET (14:32 GMT) after hitting an earlier high of 97.965.

The U.S. Commerce Department lifted some sanctions that will allow Huawei to purchase American goods after investors voiced worry that the ban could have a strong global impact on technology companies.

Google (NASDAQ:GOOGL) and chipmakers had said they had to stop doing business with the Chinese conglomerate due to it being put on a blacklist last week by the White House.

The dollar was down against the safe-haven yen, with USD/JPY falling 0.1% to 109.93.

Elsewhere, sterling was volatile ahead of an expected speech from U.K. Prime Minister Theresa May at 11:00 AM ET (15:00 GMT). Some reports suggest she could change her Brexit draft deal to include a Customs Union offer, while ideas of a second referendum are still being floated around.

GBP/USD fell 0.1% to 1.2715, while EUR/USD slipped 0.2% to 1.1150 and USD/CAD dipped 0.1% to 1.3417.

Source: www.investing.com