SINGAPORE — The euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood.
Currencies mostly shrugged off news that US President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday.
It was not immediately clear whether Trump, who has lambasted Powell repeatedly for not cutting US interest rates more aggressively, would be meeting with the Fed chief.
Markets were paying close attention to various tariff negotiations. The European Union and the US are moving towards a trade agreement that could include a 15 percent US baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday.
That came on the heels of Washington’s trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of US-bound investment and loans.
Global markets took to the latest developments positively, as risk assets rallied and investors sold the US dollar.
The risk-sensitive Australian dollar rose to an eight-month high of $0.66135 on Thursday.
The euro steadied at $1.1776, hovering near a high of $1.1830 it hit earlier this month, which marked its strongest level in more than three years.
