Investing.com - The Chinese yuan traded lower against the U.S. dollar amid the escalating trade war. The safe-haven yen rose but later gave up its gains.
The USD/CNY pair rose 0.7% to 7.1418 by 11:54 PM ET (03:54 GMT).
Sino-U.S. trade war escalated during the weekend and whacked investor confidence. On Friday, U.S. President Donald Trump announced his decision to raise existing tariffs on $250 billion worth of Chinese goods to 30% from 25% as of October.
In addition, a new round of tariffs on $300 billion in goods will be taxed at 15%, up from the current 10%, he added.
On the weekend, Trump caused some confusion by saying he may have had second thoughts on the tariffs.
The White House on Sunday clarified these comments, saying Trump actually meant he wish he had raised tariffs on Chinese goods even higher.
The move followed China’s announcement on Friday of retaliatory tariffs on about $75 billion worth of U.S. goods, putting as much as an extra 10% on top of existing rates.
Trump also urged U.S. companies to start looking for an alternative to China as Beijing imposed more tariffs on U.S. goods.
The U.S. dollar index inched up 0.1% to 97.607.
A fresh batch of economic data this week will provide investors more insights into the impact of the Sino-U.S. trade war. In the U.S., a revised estimate of second quarter GDP growth and figures on durable goods orders and trade will be in focus.
An initial estimate showed the U.S. economy grew at an annual rate of 2.1% in the second quarter, slowing from 3.1% in the first three months of the year.
The Japanese yen surged against the U.S. dollar earlier in the day amid the intensifying trade war between the U.S. and China, but later gave up its gains. The USD/JPY last traded at 105.46, up 0.1%.