The greenback lost ground following the comments of Fed’s Governor Lael Brainard regarding a short term rate hike, arguing that while global markets were steady in recent weeks, declining economy in China and weak global demand pose hazards to the economy.
The dollar fell against the Japanese yen, with USD/JPY losing 0.42% to 112.97. The safe-haven yen found support, after statistics revealed that China’s exports declined 25.4% in February compared to$126.1 billion a year before. The median estimate anticipated the exports to fell by 12.5%.
Imports dropped 13.8% year over year, slowing from previous month’s 18.8% fall. The considerable drop in exports was mainly due to the Chinese New Year, but still caused worries over declining global demand.
In another report released on the same day, data indicated that the economy of Japan contracted 1.1% in Q4 of 2015, less than the forecasted reading of 1.4%.
Elsewhere, the euro was up against the dollar, with EUR/USD higher 0.08% at 1.1023. The single currency was under pressure amid increased expectations for more easing measures from the ECB at the conclusion of Thursday’s policy meeting.
However, the dollar was stronger against the sterling, with GBP/USD losing 0.40% to 1.420, following the comments of Bank of England’s Governor Mark Carney, saying on Tuesday that the central bank would not make a suggestion regarding the referendum to be held on the 23th of June that would define whether the U.K. stays in the E.U. or not.
The dollar ticked down against the franc, with USD/CHF falling 0.40% to 0.9933.
In the meantime, the Australian and New Zealand dollars lost ground, with AUD/USD down 0.20% at 0.7543 and NZD/USD easing 0.54% to 0.6765. The National Australia Bank indicated that its business confidence index was flat at 3 last month and that January’s figure was revised from a previously forecasted reading of 2.
The dollar was higher against its Canadian counterpart, with USD/CAD rising 0.36% to 1.3328.
The U.S. dollar index which tracks the performance of the greenback against a group of six other currencies, hold steady at 97.10, marking the lowest level since the 22nd of February 2016.