© Reuters. The dollar opened in Asia morning at a low level
Investing.com – The dollar opened in Asia morning at a low level as fears of a global trade war led to sell-off, despite its short-lived rally last week when new Federal Reserve head Powell confirmed the tightening policy.
The that measures a basket of six major currencies slid 0.02% to 89.93 at 11pm ET. The dollar had been trading below the 90 handle on Monday morning.
The U.S. President Donald Trump’s tariff policy on steel and aluminum worried investors worldwide, as the administration stressed there would be no exclusion for any country. The dollar has been sliding since Trump announced the tariff last Friday.
The pair dipped 0.26% to 105.47, as the anti-risk yen gained ground amid fears of a global trade war. The pair had been trading in red and oscillating at around the 105 level. Bank of Japan’s governor Kuroda confirmed to maintain the country’s monetary policy and expected to achieve the inflation target of 2% by 2020.
The dropped 0.22% against the dollar to 0.7746. The sentiment-linked currency was dragged down by China’s underperforming . February’s PMI for the private service sector came in a 54.2 versus the expected 54.3.
Elsewhere, the People’s Bank of China set the fix rate of yuan against the dollar at 6.3431 versus Friday’s rate of 6.3334. The pair dived 0.26% to 6.3312. Focus this week is on the National People’s Congress that opened today. Premier Li Keqiang said China will keep prudent monetary policy neutral, while CPI and GDP growth are targeted at around 3% and 6.5% respectively.
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