© Reuters. The dollar is pulling back on the tensions related to the trade
Investing.com – The dollar has depreciated against a basket of other major currencies on Tuesday, as rising tensions in global trade continued to weigh on investor sentiment.
The dollar index, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, was down 0.18% to 89,53 before 03h20 (07h20 GMT).
Investors remained on the defensive after China imposed additional duties on certain u.s. imports, exacerbating a trade dispute between the two largest economies in the world and triggered concerns about the impact on global growth.
The administration Trump is expected to publish later this week a list of chinese goods that could be subject to new us tariffs.
The dollar was slightly higher against the yen, with the USD / JPY at 105.96.
The dollar has struggled to gain ground against the yen after three days of declines in the middle of a massive sale of shares in technology that has been brought back to life concerns about a trade war.
The japanese yen, generally considered a safe-haven currency, tends to be sought after by investors in times of uncertainty, political or economic.
The euro rose against the dollar, with EUR / USD rising 0.26% to 1,2333.
The pound was also stronger against the dollar, with an increase of + 0.23 per cent to 1,4077.
During this time, the australian dollar was higher, with AUD / USD rising 0.52% to 0,7702.
The Aussie showed little reaction after the reserve Bank of Australia has kept interest rates at a record low of 1.5% on Tuesday, in what was a decision widely expected.