The US dollar managed to hold its near highs today after trade war concerns prevailed, encouraging investors to lean towards the greenback.
Treasury officials squashed recent reports indicating that the Trump administration was considering delisting Chinese companies from the US stock markets. While traders mostly bypassed the news within the reports, investor sentiment remained fragile.
Investors were discouraged by the notion that the US-China trade war negotiations wouldn’t lead to a deal, boosting the demand for dollars even more.
In early European trade, the US dollar hit 99.061 against a basket of its rival currencies, while sitting at $1.0945 against the euro. Earlier this month, it reached a more than 2-year high of 99.37.
ING analysts said in a research note:
Were there better stories overseas, we suspect the dollar might be a little weaker right now, but there are not (industrial production numbers are still plumbing the depths in many countries) and thus the dollar is holding its gains.
Trading will take a relatively quiet seat ahead of the 70th anniversary of the People’s Republic tomorrow. Trade-war headlines will also most likely take a back seat as China gets ready for its week-long holiday.
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