The dollar increases as concerns about trade increase, pushing safe asset bridges
The dollar grew Friday with reports that the U.S. president was considering the plan to apply for import duties to 200 billion in China's commodity over the next week as a force of increased safety assets.
Sourced from six close relatives to the event, Bloomberg information that Trump would like to continue with the plan to apply for tax on Chinese goods as soon as possible after a broad-term asking for comments ends next week. The report came after the US and China imposed tax on 16 billion USD of goods. The two countries have also applied tax to 34 billion of goods from 7 months.
The index, which is considered a safe asset in recent months, grew 0.04% to 94.68 at 11:30 AM ET (0330GMT).
Junichi Ishikawa, senior strategic analyst at IG Securities Tokyo said: "There is a tendency to buy the dollar when commercial tension continues, which negatively affects the currency of emerging economies and promotes the dollar of increased price."
Meanwhile, President Trump said that the U.S. administration is examining the "formula" to determine the country to manipulate currencies.
He said Thursday: "It's a recipe". "And we're going to find a very strong recipe".
The U.S. president has accused many times China of manipulating their coins, though that he has no specific evidence for his allegations. His allegations are also in contrast to the discovery of the Ministry of Finance, which has refused to give names to the countries that manipulate currencies in a mid-year report on Forex policy.
The USD/CNY rate rose 0.2%, at 6.8343 on Friday. The China Central Bank has assigned reference rates at 6.8246 compared to yesterday's level at 6.8113.
The AUD/USD rate fell 0.2%. The Australian dollar is supported after China's publication of positive data. Data published on Friday shows that the growth of the production sector has increased beyond expectation in the 8th month with the official PMI rising to 51.3. Previously, analysts predicted a reduction of 51 from the 51.2 level of 7 months.
The USD/JPY rate is less changed at 111.00.
Sourced from six close relatives to the event, Bloomberg information that Trump would like to continue with the plan to apply for tax on Chinese goods as soon as possible after a broad-term asking for comments ends next week. The report came after the US and China imposed tax on 16 billion USD of goods. The two countries have also applied tax to 34 billion of goods from 7 months.
The index, which is considered a safe asset in recent months, grew 0.04% to 94.68 at 11:30 AM ET (0330GMT).
Junichi Ishikawa, senior strategic analyst at IG Securities Tokyo said: "There is a tendency to buy the dollar when commercial tension continues, which negatively affects the currency of emerging economies and promotes the dollar of increased price."
Meanwhile, President Trump said that the U.S. administration is examining the "formula" to determine the country to manipulate currencies.
He said Thursday: "It's a recipe". "And we're going to find a very strong recipe".
The U.S. president has accused many times China of manipulating their coins, though that he has no specific evidence for his allegations. His allegations are also in contrast to the discovery of the Ministry of Finance, which has refused to give names to the countries that manipulate currencies in a mid-year report on Forex policy.
The USD/CNY rate rose 0.2%, at 6.8343 on Friday. The China Central Bank has assigned reference rates at 6.8246 compared to yesterday's level at 6.8113.
The AUD/USD rate fell 0.2%. The Australian dollar is supported after China's publication of positive data. Data published on Friday shows that the growth of the production sector has increased beyond expectation in the 8th month with the official PMI rising to 51.3. Previously, analysts predicted a reduction of 51 from the 51.2 level of 7 months.
The USD/JPY rate is less changed at 111.00.
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