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Dollar at 3-Week Lows, Pound Hits Post Brexit Highs

Dollar at 3-week lows, pound hits post Brexit highs

Investing.com - The dollar slid to three week lows against a currency basket on Tuesday as concerns over tensions between the U.S. and Russia eased, while the pound hit a post Brexit high ahead of the latest UK jobs report.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.12% to 89.02 by 04:20 AM ET (08:20 AM GMT), the lowest level since March 28.

The dollar drifted lower as risk appetite improved amid expectations that U.S.-led missile strikes on Syria over the weekend would not lead to an escalation into a broader conflict.

But geopolitical tensions remained in focus amid lingering concerns over a simmering U.S. - China trade spat.

The dollar came under pressure on Monday after U.S. President Donald Trump accused Russia and China of devaluing their currencies in a Twitter post.

The tweet came after the U.S. Treasury Department published its semi-annual report on currencies on Friday and declined to name China as a currency manipulator.

China's foreign ministry said on Tuesday that information coming out of U.S. regarding the Chinese currency is “a bit chaotic”.

The dollar was lower against the yen, with USD/JPY down 0.14% to 106.97.

The euro rose to three week highs, with EUR/USD advancing 0.13% to 1.2396.

The pound hit a 22-month high against the dollar, with GBP/USD last up 0.15% to 1.4359.

The gains in the pound came ahead of a jobs report that was expected to show that wage growth overtook inflation in February, easing a cost of living squeeze and raising the chances for a rate hike by the Bank of England next month.

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