The dollar plunged more against other currencies in Asia today as U.S. tariffs imposed on Chinese imports and China’s retaliation measures shook investors’ confidence, sending down the greenback.
The dollar index that measures the greenback against other major currencies last stood at 89.22, which was down 0.28 percent as it hit another low on Friday after trading at this week’s lowest at 89.08 on Thursday.
Meanwhile, the yen bolstered to a near 17-month high and bonds gained in the wake of Trump’s plans to impose tariffs.
The yen, which is a safe haven in times of uncertainty, stayed strong at 0.6 percent in early trading to 104.82 yen against the dollar, hit its highest since November 2016.
The trade in the pair was much driven by risk sentiment at this point as investors are stocking up on the safe-haven currency at times of market volatility when the world’s two largest economies seem to be heading towards a trade war.
U.S. President Donald Trump signed a presidential memorandum to target tariffs up to $60 billion in Chinese goods that represent “misappropriation of U.S. intellectual property”.
In response to the U.S. anti-China tariffs, China planned to impose retaliatory tariffs on $3 billion of U.S. imports - 15% tariffs on steel pipes, fruit, wine and other products from the U.S. It also planned to add 25 percent tariffs on pork and recycled aluminum.
Elsewhere in Forex
Elsewhere, the People’s Bank of China set the fixed rate of yuan against the dollar at 6.3272 versus the previous day’s 6.3167. The pair eased at 0.09 percent to 6.3308.
New Zealand and Australian currencies gained on the dollar. The kiwi rose 0.3 percent to $0.7224 while the Australian dollar added 0.2 percent to $0.7705.
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