© Reuters. The dollar is advancing on trade tensions
Investing.com – The dollar rose on Wednesday to face a basket of other major currencies, the trade tensions have remained high following reports that China will soon announce a list of tariff retaliation on u.s. imports.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.16% to 89,10 at 02:59 AM (06:59 GMT), extending its recovery from a low of five weeks of 88,53.
Fears about the prospect of a trade war between the United States and China is on the rise after the chinese newspaper “Global Times” has announced on Wednesday that Beijing would announce soon a list of tariffs on american exports to China.
Reports according to which u.s. president Donald Trump has discussed the business practices of China with the German chancellor Angela Merkel and French president Emmanuel Macron have also shaken the hopes that the risk of a trade war is reduced.
Investors ‘ fears that trade tensions between the two largest economies in the world will be able to get out of control and strike a blow to the global economy.
The dollar was up versus the yen, with USD / JPY up 0.3% to 105,65.
The euro dipped slightly against the greenback, with the EUR / USD dipping 0.09% at 1.2391.
The euro fell on Tuesday after reaching a peak of five weeks against the dollar after the economic data, moderate in the euro area and the comments supportive of Erkki Liikanen, member of the board of directors of the european central Bank.
The book has grown, with GBP / USD rising 0.13% to 1,4175.
Investors had been anticipating a final revision of u.s. growth in the fourth quarter, and data on pending home sales later in the day.