Trade war fears push US dollar lower vs yen

Posted 04 April, 2018

The US dollar has kept sliding against Japanese yen in the middle of the week. The downward dynamics is related to escalating US-China conflict which may entail a trade war. 

The trade war has become even more real today following the new announcement of import tariffs by Beijing. Specifically, China's officials stated that US products will be subject to 25% mirror duties for $50 billion.

However, that was China's response to Trump's statement on Tuesday that Washington considered 25% import tariff on Chinese good worth $50 billion annually. According to the news reports, the White House strives to make Beijing revise its policy for intellectual property protection.

Today the greenback dropped to 106.34 against the yen.

In this situation, the American currency failed to get support even from the ADP report about the better employment situation in the country (new jobs amounted to 241,000, which is well above forecasts).

The euro rose against the US dollar to some 1.2300. According to the March report, the euro-area recorded a 1.4% m-o-m increase in the inflation which confirmed expectations about the Central Bank's stimulus shutdown.

The greenback also lost positions against the sterling. The latter improved to some 1.4078.

Previous story

06 April, 2018 16:44

← Greenback faces more challenges

US dollar has faced more challenges after Washington announced weak employment data. US job rate increase was below the anticipated level in March, which summoned doubts concerning the state of the country’s economy. The March results showed that NFP added 103,000, which the experts forecast 193,000. US Dollar Index dropped to 89.87.

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02 April, 2018 14:00

US dollar depressed by expanding trade war fears →

US dollar has started this week with a weakening against the majors. The market remains concerned about the possible trade wars, given higher tensions between Beijing and Washington especially after the former launched import duties on American goods. US Dollar index was recorded at some 89.57 today.

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