[ad_1]
The dollar was up sharply on Tuesday as fears of a possible escalation of the US-China trade conflict boosted demand for safe havens for the greenback and the decline in emerging market currency investors.
The dollar index, which measures the greenback against a basket of six currencies, rose 0.31% to 95.45. It reached 95.625, its highest level since August 24, earlier in the session.
"In the middle of last week, we were looking at renewed trade tensions and looking at economic data to support a Fed rate hike," said Marc Chandler, head of monetary strategy at Brown Brothers Harriman in New York. New York.
"We are now on the verge that the dollar's uptrend is continuing," he said.
The public comment period on a US proposal for new tariffs on Chinese products is expected to end on Thursday, after which US President Donald Trump could follow up plans to impose an additional $ 200 billion tariff on Chinese imports. what will happen.
China's public banks have traded dollars against the yuan for a month to a year on offshore futures markets in recent days, traders said Tuesday, supporting the yuan as markets prepare for a possible escalation in the US . -The tariff war in China.
Meanwhile, trade negotiations between Canada and the United States ended Friday without agreement on the North American Free Trade Agreement. President Donald Trump informed Congress of his intention to sign a bilateral trade agreement with Mexico.
The Canadian dollar fell to its six-week low against its US counterpart in an uncertain environment regarding Canada-US trade arrangements.
"My feeling would be that Trump is focusing on Mexico, but he's not in the mood to compromise on Canada, Europe or China," Chandler said.
Emerging market currencies were subject to special sanctions as investors feared that these export-oriented economies would be caught in the midst of a growing trade dispute.
An index of emerging currencies of JPMorgan fell to its lowest since May 2017. The Turkish lira and the Mexican peso fell against the dollar.
The main currencies were also affected by the increase in sales in the emerging markets, the euro having lost 0.41%. The greenback gained 0.36% against the Japanese yen.
The pound fell to a lengh of a week Tuesday due to growing doubt among investors as to the progress of the Brexit negotiations and to the future direction of the Bank of England.
Source link
