The dollar turned lower on Thursday, giving up early gains as rising inflation in some German regions prompted some traders to buy the euro, though rebalancing flows for the half year checked sharp losses.
With concerns about trade dominating global market sentiment, pushing stock markets and other risky assets into the red, perceived safe-haven currencies including the Japanese yen and the Swiss franc were well supported.
Though the yen showed some weakness overnight, it remains firmly below its 2018 high of above 111 yen per dollar, hit last month. The Swiss franc, another risk barometer, also remains firmly below 1.16 per euro, a level considered too strong for the central bank’s comfort.
Against a basket of currencies, the dollar edged away from a near one-year high of 95.53 hit last week and was trading in negative territory on the day at 95.24.
Against the euro, the dollar was on the back foot after data showed inflation in some German regions held this onth above the target rate set by the European Central Bank.
The single currency was trading 0.2 percent higher at $1.1572 per dollar. Against sterling, the euro hit a near two-month high at 88.40 pence.
The Australian dollar bounced modestly after sliding the previous day on the U.S.-China trade tensions. The Aussie was up 0.2 percent at $0.7356 after plumbing a 1-1/2-year trough of $0.7323 on Wednesday.
Currencies remained rangebound as mixed signals on the trade dispute between Washington and its trading partners kept sentiment subdued.