The dollar continues to trade lower in today’s market as another political turmoil in the United States strikes. The country is looking to hit wreckage as the Trump administration is looking to spark controversies on the spurring trade wars.
The greenback was the receiving on all of the upheaval the country is facing. Furthermore, the dollar continues to lose its battle against with yen. The Japanese currency is looking to hit a massive new milestone this week as the dollar produces softer results.
The yen is looking to push its best figures after four months of relative up and downs in the market. One more thing that may help the Japanese currency rise is the positive anticipations from the Norwegian Bank. The financial institution is looking for an earlier than expected rate rise.
Trade War Details
On the other hand, the dollar continues to sink as investors worry about its future under the new tariffs and the on-going trade wars. The newly announced tariffs that are going to be imposed in China brought great distraught in the market.
More information about the matter reveals that the current Trump administration is looking to cut its trade surplus in the country. According to reports, the US is looking to cut a massive $100 billion on its trade surplus.
Furthermore, this kind of tariffs and protectionism will surely boost the market dominance of the yen. According to reports, the country’s current surplus account and its long history as a safe haven for investors will play a big role.
The yen is looking to dominate the market as it starts to trade higher in the market. Tallying its latest figures, it managed to trade 113 yen per dollar a total of 0.4% increase to 105.95. The yen dominating performance is looking to extend as trade wars continue this week.
The currency even managed to hit the 105.79 mark in earlier trading in the Asian market. The figure was the strongest the currency tallied since March 7.
Dollar Sinks on On-Going Trade Wars
The market’s biggest loser in the whole trade war debacle is the dollar as investors slowly leave the currency. Today, the greenback sinks by a massive 3% since the year started buoyed by the strong commodity performance.
The subdued interest rate hike is also hurting the dollar as investors’ interest slowly dwindles down in the market. The currency managed to hit an ample surge after the Federal Chairman’s meeting exuded hawkish note but no following efforts hinder the continued surge.
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