© Reuters. The dollar is advancing, concerns support the yen
Investing.com – The dollar rose on Monday against a basket of currencies, boosted by the diverging monetary policy between the United States and Europe, while the yen remained well supported because of the trade tensions support the demand for safe haven securities.
The dollar index, which measures the strength of the dollar against a basket of six major currencies, rose 0.26% to 94,69 at 03: 30 am EST (0730 GMT), is now below the high of Friday, 95,13.
The index rose 1.33% last week, its best performance weekly in seven weeks after the Fed has displayed a hawkish tone and signalled a tightening of monetary faster this year, while the european central Bank gave a signal accommodating.
The euro declined against the dollar, with a decline of 0.37% to 1,1567 to achieve 1,1567 after an increase of 1.34% in the previous week after the ECB announced its intention to keep interest rates unchanged until at least the middle of next year.
The dollar slightly declined against the yen, with a decline of the USD / JPY to 110,57, still close to highs of three weeks from Friday to 110,90.
Worries about trade tensions have resumed after the us president, Donald Trump has announced on Friday the tariffs on $ 50 billion of chinese imports, which has pushed Beijing to respond, fuelling fears over the outlook for global growth.
The yen received an additional boost after an earthquake struck the city of Osaka, in western Japan.
The yen refuge is often sought by investors in times of geopolitical tensions and turbulence in the markets.
At the same time, the currencies linked to commodities were subjected to the pressure of oil prices.
The canadian dollar remains close to its lowest level in a year Friday, with the USD / CAD 1,3186.
The australian dollar was steady, with the AUD / USD at 0.7439 after having reached a low of five weeks of 0.7426 during the night, while the new zealand dollar was down to 0,6938.