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Forex- U.S. Dollar Falls as Trade War Continues

Published 08/31/2018, 04:35 AM
Updated 08/31/2018, 04:35 AM
© Reuters.  The U.S. dollar fell on Friday.

Investing.com - The U.S. dollar was lower against other currencies on Friday, as trade tensions between the U.S. and China continued to put pressure on the greenback.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.08% to 94.56 as of 4:35 AM ET (8:35 GMT).

U.S. President Donald Trump wants to move ahead with a plan to impose tariffs on $200 billion worth of Chinese goods when the public comment period ends next week. It’s just the latest of a series of tariffs as the two largest economies in the world go head-to-head over trade disagreements. Both countries imposed tariffs of $16 billion worth of goods, after $34 billion worth of imports in July.

The dollar was lower against the safe-haven yen, with USD/JPY decreasing 0.22% to 110.74. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

The lower greenback pushed the euro higher, with EUR/USD rising 0.09% to 1.1677. Sterling was lower with GBP/USD decreasing 0.06% to 1.3005.

The Turkish lira rose against the greenback after a cut in taxes on lira bank deposits. USD/TRY fell 1.12% to 6.5702. The lira has been under pressure over the last few weeks as the U.S. and Turkey disagree over a detained American pastor and the Turkish economy remains under pressure.

Meanwhile the Australian dollar was lower, with AUD/USD dipping 0.21% to 0.7247 while NZD/USD was down 0.06% to 0.6652. The loonie was lower against the dollar, with USD/CAD increasing 0.21% to 1.3010.

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