Wednesday, 4 April 2018 09:02 WIB | CURRENCIES |DOLLARDolar AS
The dollar eased against the yen on Wednesday, with the outlook clouded by worries that escalating U.S.-China trade tensions could exert a toll on the global economy and U.S. growth.
The dollar fell 0.1 percent to 106.50 yen, giving back some of the gains made on Tuesday, when it rose 0.6 percent against the Japanese currency.
The greenback gained on the yen the day before as risk appetite improved and Wall Street™s main indexes advanced, helping the U.S. currency stabilise after recent declines.
Considered a safe haven currency, the yen attracts demand in times of economic uncertainty. On the flip side, it often weakens when investors™ appetite for riskier assets improves.
The Trump administration on Tuesday raised the stakes in a growing trade showdown with China, announcing 25 percent tariffs on some 1,300 industrial technology, transport and medical products to try to force changes in Beijing™s intellectual property practices.
China™s commerce ministry said on Wednesday it œstrongly condemns and firmly opposes the proposed U.S. tariffs following the Section 301 probe and will take counter measures.
Against a basket of six major currencies, the dollar last traded at 90.133, having edged back from Tuesday™s near two-week high of 90.275.
The euro edged up 0.1 percent to $1.2274, regaining some footing after slipping 0.3 percent on Tuesday.