Dollar wavers on uncertainty over trade deals; S.Korean won in focus

By Ankur Banerjee

TOKYO (Reuters) -The dollar wobbled connected Thursday successful a turbulent week that saw capitalist alleviation astatine the U.S.-China tariff truce springiness mode to a cautious temper amid uncertainty implicit the signifier of assorted commercialized deals, portion the South Korean won steadied aft crisp moves.

The Asian currency was volatile overnight arsenic investors weighed the quality that officials from South Korea and the U.S. met past week to sermon the dollar/won speech rate.

But a study from Bloomberg that Washington is not negotiating for a weaker dollar arsenic portion of tariff talks helped calm the currency markets. Still, concerns that the U.S. medication could propulsion for a weaker dollar is apt to support investors wary.

The abrupt lurch successful the won was reminiscent of an unprecedented two-day surge successful Taiwan's currency astatine the commencement of May, which coincided with the extremity of U.S.-Taiwan commercialized talks successful Washington that fuelled speculation of an statement to weaken the greenback successful instrumentality for commercialized concessions.

"Reports of currency discussions betwixt the U.S. and South Korea, coupled with signs the Trump medication whitethorn tolerate a weaker dollar, person fuelled won sentiment," said Kieran Williams, caput of Asia FX astatine InTouch Capital Markets.

"Broader uncertainty astir the home outlook and commercialized tensions could temper the won’s upside adjacent term."

While the dollar has clawed backmost immoderate of its caller losses against the euro, lb and the yen that were driven by concerns implicit Trump's economical policies, it has slipped against astir of the emerging marketplace currencies.

The won was past astatine 1,410.70 per U.S. dollar aft a 0.6% emergence successful the erstwhile session. The Mexican peso was past astatine 19.38 per dollar, hovering adjacent the seven-month precocious it scaled successful the erstwhile session.

The Japanese yen strengthened a spot to 146.48 per dollar but remained adjacent to the one-month debased of 148.65 touched earlier this week.

The dollar index, which measures the U.S. portion against six different currencies, was dependable astatine 101, connected people for the 4th consecutive week of gains.

Investor absorption connected Thursday volition beryllium connected retail income information portion they look for much details connected imaginable commercialized deals aft easing of tensions betwixt the U.S. and China.

The 2 countries connected Monday announced a 90-day intermission connected astir of the tariffs imposed connected each other's goods since aboriginal April, starring to a little alleviation rally.

"We see determination is much upside to the dollar successful the adjacent word arsenic marketplace participants reassess the outlook for the U.S. and planetary economies pursuing the impermanent U.S.‑China commercialized deal," said Kristina Clifton, an economist astatine the Commonwealth Bank of Australia.