The yen progresses, the aussie and the yuan reeling after new tariffs
Investing.com – The yen rose while the Aussie and the yuan declined after the United States have announced that they would impose tariffs on $ 200 billion of additional chinese imports on Tuesday.
The yen, often sought in times of political tension and turbulence in the markets, rose against its rivals. The USD / JPY pair has dropped to 110,85 to 12: 30 PM EST (0430 GMT) after reaching a high of seven weeks 111,355 yen earlier on Tuesday.
During this time, the yuan is down by 0.6% to 6,6695, although it remains far from a low of 11 months to 6,7344 reached last week.
“One of the main concerns of the chinese government is stability,” said economist Ryan Djajasaputra of Investec Bank. “If the business situation is deteriorating and that the yuan had new pressures to the downside, we would expect the authorities to intervene, especially if there were signs of capital flight.
The administration, Trump said Tuesday that it would impose tariffs on $ 200 billion of additional chinese imports, fuelling concerns of a trade war on a large scale between the two largest economies in the world. The proposed list of goods and services includes clothing, refrigerators, televisions, and other products.
The president of the United States, Donald Trump, said that it would be forced to impose tariffs on $ 500 billion of chinese imports.
Elsewhere, the AUD/USD seen as a substitute liquid for transactions related to China, gave up 0.7% to 0,7407.
The dollar index, which tracks the greenback against a basket of currencies, also declined 0.14% to-93,98 Wednesday after the news.