Dollar Weakens As US-China Trade Truce Revives Demand For Riskier Currencies

www.oann.com | 6/22/2017 | Staff
jacensolo775jacensolo775 (Posted by) Level 3
SINGAPORE (Reuters) – The dollar fell across the board on Monday as investor demand for riskier assets rose after China and the U.S. agreed to a cease-fire in a trade dispute that has shaken global markets.

The White House said on Saturday that President Donald Trump told China’s President Xi Jinping at the G20 talks in Argentina that he would not boost tariffs on $200 billion of Chinese goods to 25 percent on Jan. 1 as previously announced.

China - United - States - Differences - Talks

China and United States will try to bridge their differences via new talks aimed at reaching a deal within 90 days.

Riskier currencies such as the Australian dollar and New Zealand dollar rallied by more than 0.5 percent each, while safe haven currencies such as the yen and the Swiss franc traded weaker in early Asian trade, signalling a clear risk-on move in the financial markets.

Trade - Truce - Markets…we - Dollar - Currencies

“The trade truce is definitely risk positive for the markets…we expect dollar safe haven buying to fade and riskier currencies such as the Aussie and Kiwi dollar to scale higher,” said Rodrigo Catril, senior currency strategist at NAB.

Catril noted that crosses such as the Aussie/yen and kiwi/yen are likely to see further upside as currency traders react to the temporary truce between the world’s two largest economies.

Dollar - Index - Gauge - Value - Versus

The dollar index , a gauge of its value versus six major peers, traded down 0.13 percent at 97.14.

The dollar lost 0.54 percent versus the offshore yuan , its steepest percentage fall since Oct. 1, to quote at 6.9134.

Yen - Monday - Greenback

The safe-haven yen weakened to 113.68 on Monday, with the greenback gaining 0.2...
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