Forex – Yuan Falls as U.S. “Not Ready for a Deal;” Dollar Ticks Higher

© Reuters. – The Chinese yuan fell, while the U.S. dollar ticked higher on Tuesday in Asia after U.S. President Donald Trump said Washington is “not ready to make a deal” with China.

The rose 0.2% to 97.685 by 11:50 PM ET (03:50 GMT). The pair edged up 0.1% to 6.9083.

Trump said on Monday that the U.S. is “not ready to make a deal” with China.

“I think they probably wish they made the deal that they had on the table before they tried to renegotiate it,” Trump said at a joint press conference in Tokyo. “They would like to make a deal. We’re not ready to make a deal.”

Trump said American tariffs on Chinese goods “could go up very, very substantially, very easily.”

The President added that he thinks the two sides could eventually reach “a great trade deal” sometime in the future.

At the conference, Trump also said he wanted exports to be “put on fair footing” in Japan through the removal of trade barriers, putting pressure on Tokyo to reduce the nation’s large trade surplus with the U.S.

The news seemed to have little impact on the yen. The pair last traded at 109.47, down 0.02%.

Meanwhile, the pair was down 0.1% to 1.1181. The currency pair rose earlier in the day after the European Union parliamentary elections showed a polarization of the 28-member block.

While center-right and center-left blocs are losing their shared majority, surges in the Greens and liberals meant parties committed to strengthening the union held on to two-thirds of seats, official projections showed.

“There is a polarization of the European parliament which is a kind of representation of the overall European political situation,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in a Reuters report. “That will be broadly negative for the euro.”

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