© Reuters. The dollar is stabilizing, while trade tensions will subside
Investing.com – The dollar has stabilized on Tuesday against a basket of currencies, the markets have regained their composure after the remarks made by the trading advisor of the White House, which helped to calm investor fears over us trade policy.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, rose slightly to 0.94.00 at 02h50 (6.50 GMT) after having ended the previous session down 0.24%.
The greenback suffered a lower pressure as yields on long-term u.s. Treasury rates fell due to the increased aversion to risk on the financial markets.
Speaking on Monday, Navarro said that the plans to prevent the chinese enterprises to invest in technology companies, the u.s. will not be as damaging to the economy than anticipate the markets.
The Treasury department is expected to announce restrictions on chinese investment in the United States by Friday.
Such a measure would counteract an initiative chinese to become a world leader in the technology, and would mark a new escalation in the trade conflict between Washington and Beijing, following the threat of tariffs.
In addition to the trade dispute with China, the us president, Donald Trump has strengthened the trade tensions with the european Union in threatening to customs duties of imported cars in the block.
The dollar was slightly lower against the yen, with the USD / JPY at 109,63, after falling to a two-week low of 109,36 Monday.
The yen is often sought by investors in times of geopolitical tensions and turbulence in the markets.
The euro was little changed, with the EUR / USD to 1.1699, after having reached a high of two 1.1720 during the night.
The british pound is also maintained, with the GBP / USD 1.3281.