Currency – The dollar slides on concerns related to trade


© Reuters. The dollar slips on concerns related to trade

Investing.com – The dollar slid lower on Monday as a result of renewed fears regarding the trade after the intervention of the american president Donald Trump in the trade dispute with China.

The dollar index, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, was down 0.26% to 89,60 at 09:07 AM (13:07 GMT).

The us dollar weakened and futures contracts on u.s. equities have reached their highest level daily after Trump complaining of the practices of the “trade stupid” permitted by his predecessors.

Trump said in a tweet that when a vehicle of chinese-made is sent to the United States, the rate is only 2.5%, while american cars exported to China are slapped with a tariff of 25%.

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The tweet has fueled fears about the prospect of a trade war between the two biggest economies in the world, which will be a blow to the global economy and u.s. growth.

The dollar has lost the gains previously acquired against the yen, with the USD / JPY to 106.92, little changed for the day. The yen tends to be sought after by investors in times of uncertainty, political or economic.

The euro has reached a peak daily against the u.s. dollar, with EUR / USD rising 0.29% to 1,2316.

The british pound has also reached the highest daily rate, with GBP / USD advancing 0.42% to 1,4146.

The canadian dollar remained stable, with the USD / CAD 1,2781.

The mexican minister of Economy, Ildefonso Guajardo, said on Monday that conditions were not ripe to announce an agreement on the free trade agreement north american this week, as had been hoped for by the investors, but he added that there was 80% agreement in principle in may.

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