The dollar strengthens the fourth week in a row after the US trade arrangement and China

The dollar index, which shows the value of USA to the six most important world currencies, strengthened 0.55 percent last week, 100.98 points.

The euro exchange rate slipped 0.7 percent, to $ 1,1165.

The American currency also strengthened to Japanese, by 0.2 percent, so its price reached 145.65 yen.

After a sharp drop in early April due to the US customs war with the rest of the world, the last week is recovered by the dollar exchange rate because trading tensions are giving up.

Last weekends, the United States and China achieved an agreement on the Provisional Reduction of Reciprocal Customs in Switzerland.

According to the Agreement, the United States has reduced the customs duties from China from 145 to 30 percent, and China on imports from the USA with 125 per 10 percent. These measures will be in force for 90 days, and in the meantime, trade negotiations between the United States and China will continue.

Thanks to that, fears of the recession are mitigated, and investors hope that the final trade agreement between the two largest world economies will be achieved soon.

Support to the dollar also provided solid economic data, mostly inflation reports. In April, namely, consumer prices in the United States have not increased more sensibly, despite the introduction of customs, Hina reports.

But they did not even significantly fallen, so it is less and less likely to reduce the U.S. Central Bank with key interest rates already in June.

However, analysts estimate that the Fed will reduce interest in two occasions in two occasions, by 0.25 percentage points, but only in autumn.

Feda leaders for a long time to say that due to the introduction of customs the growth of the economy could slow down, while inflation could strengthen, so the future economic data should be waiting before the interest rate decision.