The U.S dollar edged lower against other global currencies on Wednesday, with investors not rushing to buy the greenback amid rising trade tension between Washington and Beijing.
In Trade, On Monday, 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.
On the flipside, Beijing retaliated on Tuesday by adding levies of its own on $60 billion worth of American goods.
Moreover, the greenback has been a significant beneficiary of mounting trade-related tensions between the U.S and China in recent months, as investors bet it would gain at the expense of emerging market currencies.
Meanwhile, British Pound and Euro Traders also kept an eye on Brexit-related news out of Salzburg, Austria, where British Prime Minister Theresa May was meeting with European Union leaders at a summit.
The U.S dollar index which measures the greenback’s strength against a basket of major currencies edged down by 0.08 percent to settle at 94.55 at the close.
In Europe, the single currency edged up by 0.06 percent versus the greenback on to trade at 1.1672 EURUSD at the close.
In the United Kingdom, the Sterling pound was little changed versus the Greenback after finding support from positive inflation data, be that as it may, the cable later on earned gained after the Time reported that British Prime minister Theresa May rejected an improved offer from the European Union to solve the Irish border dispute;The GBPUSD edged lower by 0.03 percent to trade at 1.31430 at the close.
Regarding safe-haven currencies, the dollar traded at 112.28USDJPY, down by 0.06 percent. Meanwhile, Swiss franc lost to its American counterpart to trade at 0.9670 USDCHF, with the pair rising by 0.27 percent at the close.
In the economic space, Bank of Japan Governor Haruhiko Kuroda reaffirmed that he would not halt monetary easing until inflation hits his 2 percent target.
The precious metal Gold saw a 0.48 percent increase against the U.S dollar on Wednesday, to settle at 1203.94 at the close.
Elsewhere in Canada, the Loonie Strengthen against the greenback for the second consecutive session, up by 0.42 percent to trade at 1.29195 USDCAD, as the Canadian currency found support from rising oil prices and positive domestic manufacturing data supporting the Bank of Canada’s case for hiking rates in October.
Meanwhile, commodity-dependent currencies, Aussie and Kiwi dollar both advanced versus the greenback for the third consecutive session on Wednesday; The AUDUSD and NZDUSD added 0.64 and 0.48 percent to end the session at 0.7265 AUDUSD and 0.66145 NZDUSD, respectively.
In Crypto-currencies world, Bitcoin, Litecoin, and Ethereum rose against the Greenback to end Wednesday’s trading session at 6395.31 BTCUSD, 52.81 LTCUSD, and 208.39 ETHUSD, respectively.