Yahoo Finance Forex- U.S. Dollar Falls as China Cancels Trade Talks
Investing.com - The U.S. dollar was lower against other currencies on Monday as trade war jitters spooked investors.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.07% to 93.72 as of 4:53 AM ET (8:53 GMT).
China cancelled mid-level trade talks with the U.S. as well as a proposed visit to Washington by Vice Premier Liu He which had been scheduled for this week, the Wall Street Journal reported.
“The door for trade talks is always open but negotiations must be held in an environment of mutual respect,” state-run Xinhua News Agency reported. Negotiations “cannot be carried out under the threat of tariffs.”
China added another $60 billion of U.S. products on its tariff list last week, while U.S. duties on $200 billion of Chinese goods went into effect at 12:01 AM ET (4:01 GMT).
Elsewhere, the dollar rose against the safe-haven yen, with USD/JPY up 0.05% to 112.65. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.
The euro pared back earlier losses on the weaker greenback. EUR/USD increased 0.11% to 1.1761 .
Sterling remained in focus, as a majority Prime Minister Theresa May’s cabinet supported a Canada-style trade deal with the European Union, the Telegraph reported.
The news comes days after May said the UK and EU were at an impasse in Brexit negotiations. GBP/USD surged 0.31% to 1.3110.
The Australian dollar was lower, with AUD/USD down 0.26% to 0.7271, while NZD/USD fell 0.19% to 0.6677 and USD/CAD gained 0.18% to 1.2938.
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