Dollar Strengthens to 98.87, Market Focuses on US-China Drama
The US dollar strengthened slightly to 98.870 in Monday trading, after weakening earlier in the session. This strengthening occurred amid hopes that Washington would refrain from further escalation in the trade war with China. Investors began returning to dollar assets after President Donald Trump signaled an openness to negotiations with Beijing.
Previously, Trump had shaken markets with plans for 100% tariffs on Chinese imports, triggering a major sell-off in stocks and cryptocurrencies. However, a more conciliatory tone over the weekend—in which Trump said relations between the two countries would be "fine"—slipped tensions somewhat and helped the dollar recover.
Meanwhile, the weakening of the Japanese yen and the euro also boosted the greenback. The yen weakened after political dynamics in Tokyo shook the governing coalition, while the euro was pressured by a cabinet reshuffle in France. Market activity today is expected to be limited due to national holidays in the US and Japan. (asd)
Source: Newsmaker.id