The U.S dollar lost against other global currencies on Monday amid rising trade tension between the world’s two largest economies, following the announcement of further U.S tariffs on China by President Donald Trump.
In Trade, President Donald Trump announced that he will enforce a 10 percent U.S. tariffs on nearly $200 billion worth of Chinese imports, effective Sept. 24.
Moreover, the President also said that if China takes tit-for-tat action on U.S. farmers or industries, the white house will implement “phase three” and according to the president will apply “tariffs on approximately $267 billion of additional imports.”
Meanwhile, various analysts question if Beijing would be in the mood to hold trade negotiations with Washington amid Trump’s latest decision.
The U.S dollar index which measures the greenback’s strength against a basket of major currencies dropped lost 0.44 percent to settle at 94.52 at the close on Monday.
In Europe, the Euro climbed against versus the greenback on Monday; the EURUSD added 0.51 percent to end the session at 1.16836.
In the United Kingdom, the Sterling pound also gained some lost ground to the U.S dollar on Monday, supported by reports of progress on the Irish broader issue, as the Irish border issue is significant obstacle to Brexit that diplomats will attempt to overcome this week at the European Summit; the GBPUSD rose by 0.66 percent to trade at 1.31558 at the close.
Regarding safe-haven currencies, The dollar traded at 111.841 USDJPY, down by 0.18 percent. Meanwhile, Swiss franc also advanced versus the greenback to trade at 0.9623 USDCHF, with the pair down by 0.51 percent at the close.
The precious metal Gold saw a 0.59 percent increase against the U.S dollar on Monday, to settle at 1201.34 at the close.
Elsewhere in Canada, the Loonie fell by 0.08 percent against the greenback to trade at 1.30416 USDCAD.
Meanwhile commodity-dependent currencies, Aussie and Kiwi dollar both advanced versus the greenback. With the Australian dollar, which is a proxy for global growth and Chinese assets, has been battered in recent months as Trump’s tariff threats became a reality; The AUDUSD and NZDUSD added 0.33 and 0.44 percent to end the session at 0.71776 AUDUSD and 0.65751 NZDUSD, respectively.
In Crypto-currencies world, Bitcoin, Litecoin, and Ethereum rose against the Greenback to end the trading week at 6264.77 BTCUSD, 52.56 LTCUSD, and 197.19 ETHUSD, respectively.