Dollar Advances as Investors Mull US Tariffs Risks
The dollar rose against all its Group-of-10 peers as concern US-China trade talks may fail to avert a worsening trade war bolstered demand for the greenback.
The US currency gained the most versus the Aussie and the yen as traders parsed news headlines on American trade sanctions, and whether the threatened 10% tariff on China will take effect in Asia Tuesday.
President Donald Trump said his administration is planning to speak with China, leaving the door open for a potential reprieve after he delayed levies on Canada and Mexico.
“No doubt we are treading in a highly dynamic environment, where market volatility and policy flip-flops are likely to dominate,” Jun Rong Yeap, strategist at IG Asia Pte, wrote in a note. The dollar may weaken “barring any unexpected souring in US-China talks ahead”.
USD/JPY rose 0.3% to 155.13.
Bank of Japan Governor Kazuo Ueda is scheduled to appear in parliament on Tuesday.
EUR/USD fell 0.2% to 1.0321.
Treasury 10-year yields climbed 1 basis point to 4.56%; US JOLTS data is due Tuesday, potentially giving further clues on the Federal Reserve’s policy path.
USD/CAD advanced 0.2% to 1.4456.
Trump agreed to delay 25% tariffs on Canada and Mexico for a month after both countries agreed to take tougher measures to combat migration and drug trafficking at the border.
Source : Bloomberg
