US dollar firms vs euro, yen as Chinese exports rise

[NEW YORK] The US dollar strengthened against the euro and yen on Wednesday, gaining steam from improved China trade data that stoked buying in equity markets around the globe.

The safe-haven yen slipped off 18-month highs against the greenback.

"Much stronger-than-expected Chinese trade figures for March, which showed exports returning to growth for the first time in nine months, kept overall investor risk appetite elevated," said Omer Esiner of Commonwealth Foreign Exchange.

"As a result, traders were encouraged to dump traditional safe harbors like the Japanese yen as well as lower-yielding currencies like the euro." The dollar rose almost one percent against the euro, trading at US$1.1276 per euro around 2100 GMT. It advanced 0.7 per cent at 109.33 yen.

"Short-term sentiment has changed a bit since hitting some resistance levels," said Vassili Serebriakov at BNP Paribas, calling it a "corrective rebound" after the dollar's slide in the past two weeks, rather than a more durable change in direction.

The Canadian dollar fell against the US dollar after the Bank of Canada, as expected, left its key interest rate unchanged at 0.5 per cent.

The central bank noted that a multibillion-dollar stimulus announced by the federal government last month would help the country weather the oil rout.

Kathy Lien of BK Asset Management said the currency, known as the "loonie", was weighed down by a pullback in oil prices.

The US currency rose about 0.4 per cent to C$1.2817.

AFP