US dollar depressed by expanding trade war fears

Posted 02 April, 2018

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.

The US Dollar index was recorded at some 89.57 today.

According to the news reports, Beijing announced today an increase in import duties on some US products further to the recent imposition of tariffs on imports of steel and aluminum to the USA. For reference, US products are subject up to 25% duty in China.

The European currency rose against US dollar to some 1.2327. Specifically, Europe has left for the Easter holidays on Monday, while the US markets resume trading after the day off last Friday.

The US dollar-to-yen exchange rate stands at some 106.31. Last week US dollar posted gains in this pair driven by softer trade war fears and forecasts for the North Korea issue settlement.

As for the sterling, anticipated upward revision of the interest rate and restored optimism about the Brexit bolstered positions of the British currency. The sterling to US dollar rate stands at 1.4059.

Notably, insiders are now waiting for ISM report regarding manufacturing PMI in the USA.

Previous story

04 April, 2018 17:05

← Trade war fears push US dollar lower vs yen

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. China's officials stated that US products will be subject to 25% mirror duties for $50 billion.

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