U.S Dollar dipped vs Yen, trading near two-week lows, risk of trade war on the rise.June 26, 2018
The U.S. Dollar dipped against the Yen in early Asia on Tuesday, the pair was trading near its two-week lows, amid concerns escalating trade conflict between the United States and its trade partners continued to weigh on risk appetite.
Meanwhile, in Washington, U.S. Treasury Secretary Steven Mnuchin said on Monday, that the new investment restrictions would be applied “to all countries that are trying to steal our technology.”, not only China.
Mnuchin’s statement was gainsaid by White House trade and manufacturing adviser Peter Navarro, who said that any investment restrictions proposed by the Trump administration would target China and not other countries.
The news added to an already amplified sensitive situation and heightened caution among investors seen after President Trump threatened on Friday to enforce a 20 percent tariff on cars imported from the European Union. The EU said it would be forced to retaliate.
The U.S. Dollar index, which measures the Greenback’s strength against a basket of six major currencies traded at 94.49, continued to fall away from 11-month highs.
The Euro lost 0.15 percent to the Greenback to trade at 1.16854 EURUSD to 08:00 GMT after adding more than 0.40 percent on Monday, to end the session at 1.17031 EURUSD. The common currency found support from positive German and French business activity data and assurances by leading Italian politicians that their nation would not leave the single currency.
Be that as it may, in the political space, the single currency remains vulnerable to regional political instability as German Chancellor Angela Merkel faces pressure to deal with the migration issue that has divided Europe and threatened her own government.
Over in the United Kingdom, the Sterling lost 0.09 against the Greenback, to trade at 1.3257 GBPUSD at 08:00 GMT.
Regarding safe-haven assets, the U.S. Dollar hovered near its two-week low against the Yen on Tuesday as global trade tensions between the United States and its trading partners weighed on investor sentiment.
The Greenback was down 0.12 percent at 109.632 USDJPY at 08:00 GMT after dropping to 109.38 USDJPY in early Asia, it’s weakest since June 11.
The commodity-linked Australian, New Zealand and Canadian Dollars were steady to slightly softer, as a surge in crude oil prices ran out of steam and copper prices sagged.
The Canadian Dollar was little changed against its U.S. counterpart on Tuesday; The USDCAD fell 0.08 percent to trade at 1.3293 at 08:00 GMT.
Over in Australia and New Zealand, The Aussie Dollar fell by 0.12 percent against the Greenback to trade at 0.7404 AUDUSD at 8:00 GMT, Meanwhile the Kiwi Dollar lost 0.24 steady 0.68794 NZDUSD.