Washington’s decision to impose visa bans on Chinese officials combined with adding further Chinese companies to a US-trade blacklist, has weighed on the slim hopes that both economies would potentially reach a truce at upcoming negotiations.
The US dollar managed to hold its near highs today after trade war concerns prevailed, encouraging investors to lean towards the greenback.
Overnight, China’s yuan sunk to a new 11 and a half-year low, reaching its worst month on record, following fears that the economy is suffering from an intensifying US-China trade war.
Asian and Australian shares dived on Monday amid a new bout of the US-China slugfest that has been dominating the markets in recent months.
As fears circling the US-China trade conflict escalated, the demand for safe-haven currencies began to surface, resulting in a slight rise for the yen today.
Overnight, financial markets all around the world fell due to increasing pressure and concern surrounding the US-China trade dispute.
In early trading today in Europe, the dollar fell against safe havens such as yen and Swiss franc, after the president announced a sharp acceleration of the US trade war with China.
The impact of the US-China trade war goes beyond its primary players, resonating through the forex market.