Forex – U.S. Dollar Falls as NAFTA Talks Continue


© Reuters. The dollar was lower on Wednesday.

Investing.com – The U.S. dollar was lower against other currencies on Wednesday amid trade war tensions, while the pound was flat following Brexit uncertainty.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.17% to 94.06 as of 11:45 AM ET (15:45 GMT).

On Tuesday, China said it would impose new tariffs on U.S. goods worth $60 billion, effective Sept. 24. The new tariffs are in response to U.S. tariffs on Monday of 10% on $200 billion in Chinese goods, which will go up to 25% at the end of the year.

Meanwhile, trade developments with the U.S. and Canada continued, as Canadian Prime Minister Justin Trudeau said he was going to need see “movement” before a deal could be reached.

“We’ve been very clear that we’re interested in what could be a good deal for Canada, but we’re going to need to see a certain amount of movement in order to get there,” Trudeau said in Ottawa.

The Canadian Minister of Foreign Affairs Chrystia Freeland returned to Washington to continue trade negotiations. White House economic adviser Kevin Hassett said Wednesday that the administration was ready to move forward on a North American trade deal without Canada.

The loonie fell against the dollar, with decreasing 0.20% to 1.2948.

Elsewhere, the dollar fell against the safe-haven yen, with down 0.15% to 112.20. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

Meanwhile, sterling was flat after reports that Prime Minister Theresa May will reject the European Union’s proposed solution to the Irish border question. May is currently in Salzburg, Austria to discuss Brexit with European leaders. increased 0.11% to 1.3161. rose 0.18% to 1.1685.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments