Dollar Gains On China Tensions – 22 July, 2020

Heightened U.S.-Sino trade tensions helped the dollar break a downward slump against major currencies. After accusations of spying, the U.S. gave China until the end of the week to close their Houston based consulate, causing the yuan to slide. The Australian dollar was just below a 15 month peak at $0.7143, while the kiwi was just below a six month peak at $0.6657. The euro was 0.3% below a 21 month peak at $1.1571 in overnight gains on the news that Europes leaders have agreed on a stimulus package. The offshore yuan dropped to a one-week low, falling 0.6% to 7.0174 per dollar. The dollar was above a four-month low at 94.980 against a basket of major currencies. The Swiss franc was just below a four-month high at 0.9287 per dollar, and the yen was steady at 107.15 per dollar.