WASHINGTON (dpa-AFX) - The dollar is turning in a mixed performance against its major rivals Wednesday afternoon, but remains little changed overall. Traders have had little reaction to the release of the Beige Book this afternoon and there was no U.S. economic data this morning. However, the buck is posting a significant gain against the British pound after UK inflation hit its lowest level in a year.
Business owners are getting nervous about a possible trade war with China, according to the Federal Reserve's Beige Book.
'Outlooks remained positive, but contacts in various sectors including manufacturing, agriculture, and transportation expressed concern about the newly imposed and/or proposed tariffs,' the Beige Book read.
Economic activity continued to expand at a modest to moderate pace across the 12 Federal Reserve Districts in March and early April.
The dollar has dropped to around $1.2385 against the Euro Wednesday afternoon, from an early high of $1.2341.
Eurozone inflation accelerated in March albeit at a slower than initially estimated pace, final data from Eurostat showed Wednesday. Inflation rose to 1.3 percent in March from 1.1 percent in February. The rate was revised down from 1.4 percent estimated on April 4.
Eurozone construction output fell for the second straight month in February, Eurostat reported Wednesday. Construction output declined 0.5 percent month-on-month, slower than the 0.8 percent decrease in January.
The buck has climbed to around $1.4210 against the pound sterling this afternoon, from an early low of $1.4314.
UK inflation slowed to a one year-low in March, diminishing scope for a rate hike in May as markets widely expect. Consumer prices climbed 2.5 percent year-on-year in March, slower than the 2.7 percent increase posted in February, the Office for National Statistics said Wednesday.
Inflation was forecast to remain unchanged at 2.7 percent. This was the weakest rate since March 2017, when prices gained 2.3 percent.
British house price inflation moderated for the second successive month in February, figures from the Office for National Statistics showed Wednesday. The house price index climbed 4.4 percent year-over-year in February, slower than the 4.7 percent rise in January, which was revised down from a 4.9 percent increase reported earlier.
The greenback reached an early high of Y107.384 against the Japanese Yen Wednesday, but has since eased back to around Y107.210.
Japan posted a merchandise trade surplus of 797.3 billion yen in March, the Ministry of Finance said on Wednesday, up 32.1 percent on year. That exceeded expectations for 499.2 billion yen and was up sharply from 3.4 billion yen in February.
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