The US dollar is close to its 11-month peak vs the Chinese yuan. At the same time, Australian currency plunged following the reports about new duties on Chinese imports worth $200 billion in the USA. The decision of Washington only adds fuel to the fire now.
Such news background only even more expanded tensions regarding the US-China trade war, especially given that just a few days ago the USA had launched 25% import duty on Chinese products worth $34 billion. Notably, Beijing took similar countermeasures, as it had stated earlier.
The US Dollar index hiked to 93.94.
The yuan has weakened to some 6.6755 against the US dollar this morning, which means that the currency can touch its almost a year low at 6.7344 recorded in early July.
The euro-to-US dollar exchange rate dropped $1.1736 and the sterling to the greenback fell to some 1.3270.
The greenback gained grounds against the yen reaching 111.05. The Australian dollar dropped to $0.7413, so the currency is no longer at the week peak of $0.7484.
According to the US trade representative, Washington will launch another 10% tariff on Chinese products, expanding the list of the products subject to the restrictions worth $200 billion. The White House has released the list of the Chinese products that may face restrictions.