Dollar falls vs. yen after U.S. threatens further tariffs on China
Tuesday, 19 June 2018 16:14 WIB | CURRENCIES |DOLLAR Yen EuroDolar ASAussie
The dollar fell against the Japanese yen and Swiss franc on Tuesday after U.S. President Donald Trump's threats of more tariffs on China heightened fears that an escalating trade dispute could damage global growth.
Hostility over trade between the world™s two largest economies intensified on Tuesday when Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods, prompting a swift warning from Beijing of retaliation.
Global stock markets skidded on the news and China™s yuan fell to a more than 5-month low versus the dollar.
Investors bought currencies traditionally considered safe havens including the Japanese yen, which climbed 0.8 percent against the dollar to 109.56 yen, its highest level in a week.
The Swiss franc, often sought in times of market turmoil, also got a boost from the news. It was up as much as 0.3 percent against the dollar to 0.9918 franc.
On Tuesday, however, the dollar strengthened 0.2 percent versus a basket of major currencies, nearing a seven-month high of $95.131.
The euro, meanwhile, remained under pressure due to a dispute in Germany™s governing coalition and expectations the European Central Bank will hold interest rates steady into 2019.
The single currency hit a session-low of $1.1572 as it approached a two-week low of $1.1541 recorded on Friday.
The Australian dollar sank to a one-year low of A$ 0.7380 on the escalating U.S.-China trade dispute and as base metal prices slid.