The dollar held steady near a two-week high against other major currencies on Monday, as investor risk appetite held up despite the latest data showing China’s 2018 economic growth slowing to a near three-decade low.
The dollar index, which measures its strength against a group of six major currencies, was steady at 96.308 (DXY) after being high to 96.394 percent on Friday, its strongest since Jan. 4.
“The dollar index is clearly on a recovery track. The currency was stuck in a downtrend at the start of January but is now being bought back against its peers such as the yen, euro, pound and the Aussie,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
The U.S.-China trade friction has already put pressure on China’s economy, with the latest data showing the world’s second-biggest economy slowing further in the last quarter of 2018. Markets appeared to take the outcome, largely in line with expectations, in their stride.
The dollar was down 0.1 percent at 109.64 yen, taking a pause after being high three-weeks of 109.895 on Friday. The greenback had gained more than 1 percent against its Japanese peer last week.
The euro nudged up 0.15 percent to $1.1376 (EUR=) but remained in close reach of a two-week low of $1.1353 brushed on Friday.
The pound was 0.1 percent lower at $1.2860.
“The pound is at current levels based on assumption that a no deal Brexit has been avoided. But even an exit with a deal will likely leave some damage on the economy, so it is difficult to see the pound make much further headway from here,” said Koji Fukaya, president at FPG Securities in Tokyo.
The 10-year Treasury note yield (US10YT=RR) rose to a three-week high of 2.799 percent on Friday, continuing its rise from a one-year low of 2.543 percent plumbed early in January.
The U.S. financial markets will be closed on Monday for Martin Luther King Jr. Day.
