The dollar rebounded to a two week high as trade tensions temporarily eased.
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The US dollar rose to a two week high against a basket of currencies on Thursday, thanks to the rebound in US stocks and signs that the US is seeking to resolve trade disputes with China.
The US dollar rose to a three week high against the yen and rose to a 10 week high against the Swiss franc. In turbulent times, investors buy two hedge currencies, the Japanese yen and the Swiss franc.
Kudelo (Larry Kudlow), director of the White House National Economic Commission, said on Thursday that he expected the US and China could eliminate trade disagreements over a period of time, "the two sides may dismantle" trade barriers.
His speech prompted the dollar to pick up.
"China's measures are unlikely to be fully implemented, and its design aims to make the odds of this game a compromise," said Karl Schamotta, a director of Cambridge Global Payments global product and market strategy.
"In view of its trade surplus creditor status, China may eventually make some small concessions, cut some tariffs and strengthen intellectual property protection - but only to those strategies that serve more strategic goals," he said.
China's state-run Xinhua news agency said on Thursday that China will surely win in the trade war with the United States, with confidence that China has a huge consumer market, which is a major advantage of China.
Beijing announced a tariff on major U.S. imports of soya, aircraft, sedan, beef and chemical products on Wednesday, responding to a similar move in the United States.
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