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Forex- U.S. Dollar Falls as U.S.-China Trade Talks End

Published 2018-08-24, 05:25 a/m
© Reuters.  The U.S. dollar fell on Friday.
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Investing.com - The U.S. fell against other currencies on Friday as trade talks between the U.S. and China ended.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, decreased 0.12% to 95.44 as of 5:24 AM ET (9:24 GMT).

The U.S. and China moved ahead with 25% tariffs on $16 billion worth of goods, as trade talks between the two ended with no agreement. The two biggest economies in the world have been in a tit-for-tat trade war for months.

Meanwhile, Federal Reserve Chairman Jerome Powell is expected to speak on Friday at the annual meeting of central bankers in Jackson Hole, Wyoming. Investors will listen closely for possible clues on future monetary policy. The Fed kept rates unchanged at its last meeting in August but is expected to increase rates at least two times before the end of the year.

The dollar was higher against the safe-haven yen, with USD/JPY increasing 0.13% to 111.44. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

The euro was higher, with EUR/USD rising 0.22% to 1.1564. Sterling also gained ground with GBP/USD up 0.04% to 1.2820.

The Turkish lira fell slightly against the greenback, with USD/TRY rising 0.12% to 6.0800 in thin trading, as Turkish financial markets are closed for holidays for the week. The lira has been under pressure over the last few weeks as the U.S. and Turkey disagree over a detained American pastor.

Meanwhile the Australian dollar was up, with AUD/USD rising 0.39% to 0.7275 while NZD/USD was up 0.02% to 0.6641. The loonie was slightly lower against the greenback, with USD/CAD inching forward 0.01% to 1.3082.

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