Dollar falls on rising fears trade war will hit U.S. growth
Published : Monday, 12 August, 2019 at 10:35 PM Count : 155
Increasing expectations that the U.S.-China trade war will have a negative impact on American economic growth pushed the dollar lower on Monday.
In overnight trade the Japanese yen rose to its highest against the dollar since March 2018 - barring a flash crash in January this year - as investors ramped up bets that the safe-haven currency could gain more if the trade conflict is prolonged. By midday in North America, the dollar was 0.34% lower against the yen at 105.30, reports Reuters.
“The stronger yen was at or near 2019 highs against its U.S. counterpart on prospects of a long drawn-out U.S.-China trade war.
The longer the trade war drags on, the more likely it would weigh (on) the global outlook and crimp the world economy, a negative for market morale,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.
The dollar index was 0.12% lower at 97.371. Against the euro it was 0.22% weaker at $1.1224.