Dollar Reaches New High in Four Months as Business Disputes Worsen by Investing.com

Investing.com – The dollar hit a four-month high against the yen and Swiss franc earlier Monday in Europe as the worsening trade dispute between the United States and China prompted a tender for "safe haven" assets.

At 03:00 ET (0700 GMT), the dollar was at 109.73, down 0.2% from Friday night, and had plunged to 109.60 overnight. It was a bit above the three-month low that the pair reached on Friday with the entry into force of a new round of US tariffs on imports from China.

The dollar hit a new four-month high against a 6.8654 yuan in one night.

Over the weekend, President Donald Trump launched a process to impose 25% tariffs on all remaining Chinese imports, but both parties continued their negotiations by avoiding a complete break in negotiations. It is still unclear what form the reprisals promised by China will take.

Anthony Kettle, a senior portfolio manager at BlueBay Asset Management, said it was "logical" that any agreement to settle the dispute should now be delayed and that global growth in the second quarter could suffer.

"This represents a significant change from the market expectations of signing an agreement this week," Kettle said. "Trade uncertainty is not the friend of the market, which leads us to adopt a more cautious approach in the short term, despite the better economic data recorded lately."

The index, which measures the greenback against a basket of six major currencies, was 97,340, unchanged from Friday, as weakness against paradise was offset by higher risk indicators such as .

In Europe, there was little data or political calendar to move the or. Sterling could be upset later in the week by more political maneuvering ahead of the European Parliament elections in nine days, while the low number of polls puts more pressure on Prime Minister Theresa May for her to suspend negotiations with the Labor Party on a multi-party agreement. deliver the Brexit.