Mexico Trade Tensions Causes Dollar To Fall to Yen – 5 June, 2019

Although the dollar was supported earlier in the day by optimism over U.S. and Mexico trade talks, the dollar ended the day 0.16% lower versus the yen to 108.286 yen with no resolution in sight. Last week, U.S. President Donald Trump said he would slap 5% tariffs on all Mexican exports to the U.S. if they did not try harder to curb illegal immigration. The euro gained 0.05% to $1.1227, having fallen 0.3% earlier in the day. It briefly touched a 1 1/2 month high this week of $1.1307, further weakening the dollar. Against a basket of major currencies, the dollar index fell to a two month low of 96.749 on uncertainty about the Federal Reserves plans to cut interest rates.