Forex – Dollar Rebounds against Yen as Trade War Fears Ease

© Reuters. Dollar rebounds against yen as trade war fears ease – The dollar rebounded from 16-month lows against the yen on Monday as fears over a possible trade war between the U.S. and China eased following reports that the two sides were attempting to resolve the issue behind the scenes.

was up 0.33% to 105.08 by 03:50 AM ET (07:50 AM GMT) after falling to 104.62 overnight, the weakest level since November 2016.

The Wall Street Journal reported Monday that to improve U.S. access to Chinese markets, after a week of threats to use trade tariffs.

The report saw the safe haven yen turn lower and rebound as investor sentiment recovered.

Fears over the prospect of a trade war between the world’s two largest economies sparked a wave of risk aversion, sending Wall Street tumbling on Friday.

The euro moved higher against the dollar, with rising 0.26% to 1.2385.

The pound was also higher, with climbing 0.35% to 1.4179.

The , which measures the greenback’s strength against a basket of six major currencies, was down 0.17% to a one-month low of 88.95.

The Australian dollar was higher, with up 0.48% to 0.7736. China is a major destination for Australian exports.

The trade-related New Zealand and Canadian dollars were also stronger, with last at 0.7283 and most recently at 1.2851.

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