Investing.com – The u.s. dollar was nearing the highs of two weeks against a basket of currencies on Wednesday, as concerns about trade tensions and the slowdown of global growth have weighed on the confidence of investors, increasing the demand for japanese yen.
The dollar index against a basket of six major currencies was at 96,38 at 10: 50am, not far from the highest of the 96,45 tested Tuesday, the highest since June 20.
The greenback was lower against the refuge japanese yen, down from 0.2% to 107,66, after having fallen from the summit of the 12 days of 108,53 in the beginning of the week.
At the G20 summit in Japan on Saturday, Washington and Beijing have agreed to resume trade negotiations after u.s. president Donald Trump has offered concessions.
But investors were wary of the chances of a resolution of the trade war that had lasted for a year between the two largest economies in the world, especially given the recent collapse of the discussions and comments of Trump, according to which any agreement should be reversed in favor of the United States.
The threat of tariffs of $ 4 billion in additional goods of the European Union has also weighed on Washington, in the framework of a long-standing dispute over subsidies to aircraft.
The concerns related to global growth have also weighed on the confidence of investors, South Korea, being the last economy dependent on trade to have reduced its goals of economic growth and export targets, a day after the fall of the prices of plants in the world.
The euro was slightly lower at 1,1270, after a session of volatile Tuesday, with a minimum of 1,1275 and a maximum of 1,1322.
The common currency rose after the announcement through the media that the decision-makers of the European Central Bank are in no hurry to lower interest rates at a policy meeting in July. But she then slipped after the director general of the IMF, Christine Lagarde, seen as a dove policy, has been named the new president of the ECB.
The pound was also lower against the u.s. currency, down from 0.23% to 1,2562.
The governor of the Bank of England, Mark Carney, pointed out Tuesday, the uncertainties related to trade disputes, and the Brexit, pushing investors to increase their chances of relaxation vis-à-vis the central bank.
The australian dollar was stable at 0,6988 after having gained about 0.4% on the eve. The aussie climbed after the interest rate reduction by the reserve Bank of Australia, but also provided a more balanced view.
–Reuters contributed to this report