Forex – Dollar Flat as Trade-War Concerns Resurface to Lift Yen


© Reuters. The dollar was roughly flat on Wednesday

Investing.com – The dollar was flat against its rivals Wednesday, pressured by a stronger yen as trade-war fears resurfaced after China vowed to slap further tariffs on a raft of U.S. goods.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.01% to 95.01.

The Chinese Ministry of Commerce said it will impose a 25% charge on $16 billion worth of U.S. goods. The 333 goods targeted by China would include vehicles, and fiber optical cables.

The announcement from China comes after the Trump administration followed through with a 25% tariff on an additional $16 billion of Chinese goods Tuesday evening.

The latest volley of American and Chinese tariffs takes the total of targeted goods to $50 billion on each side and are slated to come into effect on Aug. 23.

That propped up demand for safe-haven yen and the Swiss franc against the greenback.

fell 0.37% to Y110.98, while fell 0.09% to 0.9946.

A slump in the pound to its lowest level in a year, amid fears of a no-deal Brexit, and renewed pressure on the yuan steadied the dollar.

fell 0.46% to $1.2880, while gained 0.18% to 6.8328.

The plunge in pound comes after U.K. International Trade Secretary Liam Fox said it was more likely than not that Brexit happened without a trade deal. The odds of Britain not securing a trade deal before leaving the EU were “certainly not much more than 60-40,” Fox said.

fell 0.02% to $1.1596.

rose 0.13% to C$1.3070 as falling oil prices weakened the oil-price sensitive loonie, supporting on the pair.

Also weighing on the loonie were reports Saudi intuitions were considering selling Canadian assets amid the ongoing Saudi-Canada conflict.

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