Forex – U.S. Dollar Flat as China Retaliates with $60 Billion in Tariffs


Forex - U.S. Dollar Flat as China Retaliates with $60 Billion in Tariffs – The U.S. dollar was flat against other currencies on Tuesday as China announced retaliation tariffs against the U.S.

China said it would impose new tariffs on U.S. goods worth $60 billion, effective Sept. 24, Reuters reported. The new tariffs are in response to U.S. tariffs on Monday of 10% on $200 billion in Chinese goods, which will go up to 25% at the end of the year.

President Donald Trump tweeted that “there will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!” He previously stated that the U.S. would impose tariffs on another $267 billion of additional imports if China retaliates.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, inched up 0.02% to 94.11 as of 11:30 AM ET (15:30 GMT).

Elsewhere, the dollar rose against the safe-haven yen, with USD/JPY up 0.43% to 112.36. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

The Chinese yuan recovered slightly after the news, but still remained near a three-week low. USD/CNH fell 0.07% to 6.8654, compared to a session high of 6.8921.

Meanwhile, the euro and sterling were flat amid Brexit worry. The EUR/USD increased 0.03% to 1.1685, while the GBP/USD fell 0.04% to 1.3145. The Australian dollar was higher, with AUD/USD up 0.36% to 0.7207 while NZD/USD rose 0.08% to 0.6582.

The loonie fell against the dollar, with USD/CAD decreasing 0.38% to 1.2993.

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