© Reuters. The dollar stagnates on a potential trade war
Investing.com – The dollar struggled to make headway against a basket of other major currencies on Wednesday amid concerns that the escalating trade tensions between the United States and China could strike a blow to the global economy and u.s. growth.
The dollar index, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, was little changed at 89,84 at 03:15 AM (07:15 AM GMT).
Persistent concerns about the tensions, global trade continued to weigh on the prospects of the american currency.
On Tuesday evening, the administration Trump has announced tariffs of 25% on annual imports of $ 50 billion from China in order to impose changes in the practices of intellectual property, Peking.
The chinese ministry of Commerce has immediately warned that it was preparing “countermeasures” of “an intensity and a magnitude equal”, which could be announced as soon as Wednesday.
The dollar was slightly lower against the yen, with the USD / JPY at 106.53, not far from the low of 106.40.
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 was virtually unchanged against the dollar, with the EUR / USD to 1,2272.
Investors anticipated inflation data for the euro area for the month of march, which could bring a bit more to the prospect of a normalisation of policy by the european central Bank.
The pound was slightly stronger against the dollar, with GBP / USD at 1.4068.
Investors are interested in the latest report on employment in the United States and to the comments of the president of the federal Reserve, and Jerome Powell on Friday.
The signs of growth of salaries and wages increase could to stress the need for the Fed to raise interest rates at a faster pace.
Expectations of higher rates tend to boost the dollar, making the currency more attractive for investors in search of yield.