Investing.com – The dollar sank yet again against the other currencies in Asia on Monday morning, while the greenback declined on fears of global trade war on a large scale between the two largest economies in the world – the United States and China. Investors are also awaiting the figures for the u.s. GDP that will be published later in the week.
The dollar index, which tracks the greenback against a basket of six major currencies stood at 88,98 at 00:09 AM AND (04:09 GMT), down 0.12%, reaching a low of one month.
Last week, the us president, Donald Trump has signed a memorandum presidential for import duties on chinese imports ranging up to $ 60 billion, citing this decision as being due to “a misappropriation of american intellectual property”.
In China, the people’s Bank of China (PBOC) has set the fixed rate of the yuan against the dollar to 6,3193 against 6,3272 the previous day. The pair USD / CNY has fallen by 0.04% 6.3120.
In response to the rates of anti-China us, China plans to impose taxes on $ 3 billion of u.s. imports. The country planned to impose tariffs of 15% on steel pipes, fruit, wine and other products from the United States. It was also possible to add 25% of customs duties on pork and recycled aluminum. The growing tensions between the two countries hamper the risk appetite of investors.
The pair USD / JPY has gained 0.20% to 104,95, after falling to a low of one month to 104,67 Monday morning. The pair fell below the 104 on Monday after having been above 106 last week. In a period of market volatility, risk aversion leads to the appreciation of the yen, investors are supplying on the safe-haven currency.
The deepening of a political scandal in Japan has also been cited as a catalyst to boost the yen. The japanese Prime minister Shinzo Abe has pushed his policy of “Abenomics” to lower the yen, and its unpopularity stemmed from the scandal has weakened the efforts of loosening monetary.
The AUD / USD pair was trading at 0,7728, up 0.38%. Australia will publish its data on new home sales in February and the deputy governor of the Reserve Bank of Australia (RBA), Kent, is expected to speak Tuesday.