The dollar index, which measures the strength of the greenback against a range of major currencies, rose 0.39%, to reach the price of 94.90.<\/p>\n
US President Donald Trump told his aides that implementation of tariffs on Chinese goods had begun, bringing fears of a global trade war to markets and market participants. In addition, another contributor to the USD\u2019s rally was the optimistic economic data, the most important of which is the US consumer index, thus raising sentiment in the markets.<\/p>\n
On Thursday, Trump asked his aides to proceed with the application of customs duties on Chinese goods worth 200 billion dollars, additional tariffs to the fees applied at the beginning and which Beijing applied similar tariffs against US goods. The announcement has been delayed because the US administration is looking at revisions based on market concerns.<\/p>\n
Therefore, the prospect of US sanctions on Chinese goods has led to increased demand for the US dollar as investors in the greenback bet that the US economy will be able to face a potential trade war better than China.<\/p>\n
The biggest reaction after the latest news came in the AUD \/ JPY, which fell 0.33% to trade at 80.26 yen per AUD. The Australian economy relies heavily on the export of raw materials, especially minerals, to China. Trading with China accounts for one-third of Australian exports each year.<\/p>\n
Meanwhile, the US dollar rose against the Japanese yen by 0.10%, with the USD\/JPY pair, sensitive to market tensions, reached 112.03 yen per dollar.<\/p>\n
The dollar’s rally was also supported by the rise in July retail sales data, which overshadowed weak data for August and indicated the underlying consumer strength.<\/p>\n
The Commerce Department said on Friday that retail sales rose 0.1% last month. Retail sales excluding automobiles were adjusted to 0.9% in July.<\/p>\n
Despite this, some analysts expressed concern that the upcoming constitutional elections may lead to problems for the dollar despite the general optimism in the markets. They see political uncertainty as making the rising deficit of the United States a time bomb for the dollar.<\/p>\n
GBP \/ USD fell 0.26% to trade at $ 1.3074 per pound, while the EUR \/ USD dropped 0.46% to hit $1.1636 per euro. The USD \/ CAD also rose 0.33% to hit C$1,3040, with the Canadian dollar under pressure amid a loss of hope for a US-Canada trade agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"
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