© Reuters. The dollar key to a more everyday low against the yen
Investing.com – The dollar key to a more everyday low against the yen on Monday, while the increased trade tensions between the United States and China have hit the market sentiment, supporting demand for safe-haven.
The USD / JPY fell 0.23 per cent to 110,40 at 10:31 AM (14h31 GMT), away from the highs of three weeks reached Friday at 110,90.
The market sentiment deteriorated, as the measures of China against the commercial rates charged by the authority Trump have rekindled fears of a trade war is possible between the two largest economies in the world.
The yen refuge is often sought by investors in times of geopolitical tensions and turbulence in the markets.
The euro was little changed against the dollar, with the EUR / USD to 1,1603, compared with a previous low of 1,1565.
The single currency remained on the defensive after a more hawkish tone from the federal Reserve have pointed to a monetary tightening accelerated this year, while the european central Bank gave a signal accommodating.
The euro declined 1.34% against the dollar the previous week, after the ECB has outlined plans to maintain interest rates unchanged until at least the middle of next year.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, is at 94,52, below a highest of the last nine months on Friday, 95,13.
The british pound declined against the dollar, with GBP / USD losing 0.29 per cent to trade at 1,3238.
Earlier in the day, the british chambers of commerce have lowered their growth forecasts for the United Kingdom because of the uncertainty surrounding the Brexit and the fears of a trade war world.