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Dollar Stays Firm Against Most Major Currencies

The U.S. dollar exhibited strength against most major currencies on Tuesday even as traders continued to weigh the likely impact of U.S.-China trade conflicts on the global economy and digesting the latest batch of economic data

The dollar index rose to a high of 97.55 and was last seen up 0.17%, at 97.52.

The Japanese yen, which rose sharply on safe haven appeal on Monday, retreated today, contributing notably to the greenback's strength.

The yen weakened to 109.77 a dollar at one stage before it recovered to 109.60 a dollar, still down nearly 0.3% from previous close.

Data from Japan's Ministry of Finance showed Japan's current account surplus stood at 2,847.9 billion yen as on 31 March 2019, down 10.6% on year.

That missed forecasts for a surplus of 3,007.2 billion but was still up from 2,676.8 billion in February.

The trade balance showed a surplus of 700.1 billion yen, also missing expectations for 838.9 billion yen and up from 489.2 billion yen in the previous month.

Exports fell 5.2% on year to 7.058 trillion yen, while imports added an annual 1.5% to 6.358 trillion yen.

The euro fetched $1.1208 dollar, down from $1.1223 a session earlier.

Eurozone industrial production fell for the second straight month in March, declining by 0.3% month-on-month, figures from Eurostat showed on Tuesday. In February, industrial production fell 0.1%.

The latest decline was driven by 1% fall in non-durable consumer goods and a 0.3% decline in energy production.

Against Pound Sterling, the greenback was up 0.4% at $1.2907, strengthening from a low of $1.2971.

In economic news from the U.K., jobless rate declined in the first quarter to the lowest since 1974, signaling continuing firming of the labor market, the Office for National Statistics reported Tuesday.

The ILO jobless rate came in at 3.8 percent in the first quarter, while the rate was expected to remain unchanged at 3.9 percent. The rate has not been lower since last quarter of 1974, the ONS said.

The U.S. currency gained marginally against the Aussie with the AUD-USD pair trading at 0.6943.

Against the loonie, the dollar was down 0.1% at 1.3464, which against Swiss franc, it was gaining 0.27% at 1.0091.

The Chinese yuan, which fell to around 6.9200 on Monday as trade war tensions escalated, recovered today amid renewed optimism the two largest economies in the would might agree on a trade deal sometime soon.

In U.S. economic news, a report from the Labor Department showed U.S. import prices rose by much less than expected in the month of April.

A drop in prices for non-fuel imports partly offset another jump in prices for fuel imports, the report showed.

Import prices edged up by 0.2% in April after climbing by 0.6% in March. Economists had expected import prices to increase by 0.7%.

The report said export prices also rose by 0.2% in April following a 0.6% increase in the previous month. Export prices had been expected to climb by 0.5%.

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