Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar firms as China-U.S. tensions rise

ForexMay 05, 2020 04:48
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: File photo of a Chinese 100 yuan banknote being placed under a $100 banknote in this photo illustration taken in Beijing

LONDON (Reuters) - The U.S. dollar edged higher for a second consecutive day on Tuesday as traders worried about rising tensions between the United States and China, while the Australian dollar gained thanks to a bounce in oil prices.

But the dollar's gains were marginal as risk sentiment improved slightly on further easing of lockdown measures, raising hopes the global economy is likely to be close to or just past the worst of the sharp downturn.

"Investors have turned their gaze back to the easing of the 'stay at home' measures ... with the slowdown in both infected cases and deaths helping sentiment," said Charalambos Pissouros, a senior market analyst at JFD Group.

Against a basket of its rivals (=USD), the dollar edged up 0.1% to 99.55, and was not far away from a near two-week high of 100.83 in late April.

The dollar strengthened after U.S. President Donald Trump stepped up verbal attacks on China ahead of a Nov. 3 presidential election, raising fears of a new trade war.

The Australian dollar inched up more than 64 cents to $0.6454 after the Reserve Bank of Australia left its targets for the cash rate and three-year government bond yields unchanged at 0.25%, but forecast the economy would suffer its largest ever contraction in the first half of the year.

Public holidays in Japan and China lightened trade; the yuan rose to 7.1195 per dollar in offshore trade, recovering from a six-week low of 7.1560 hit in the previous session, but well below the range it was in last month.

Other commodity currencies like the Norwegian crown also advanced as oil prices bounced.

U.S. crude rose (CLc1) 6.6% and Brent (LCOc1) around 5% as production fell and countries around the globe including Italy, Finland and several U.S. states eased lockdown restrictions.

Elsewhere, the euro slipped 0.1% to $1.0892, hit by a court challenge from German academics to the European Central Bank's bond buying programme.

A ruling is due later on Tuesday and while an outright rejection of the German Bundesbank's participation in the asset purchases appears unlikely, anything less than a clear-cut defeat of the challenge could hit the single currency.

Dollar firms as China-U.S. tensions rise
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email