Trade Tensions Continue To Hurt Dollar – 12 February, 2019

Investors flew to the euro and yen as faith is put into trade talks between the U.S. and China coming to a resolution, causing the dollar to dip against a basket of major currencies. If the two sides cannot come to an agreement, U.S. tariffs on Chinese $200 billion worth of imports are expected to rise from 10 percent to 25 percent.  For the past year, trade tensions have slowed global growth and caused disrupted factory activity. The dollar index dipped to 96.65 after losing 0.35 percent earlier in the week. The euro rose 0.1 percent to $1.1335, and the Australian dollar gained 0.3 percent to $0.7112. As the Brexit deadline approaches and uncertainty is still in the air, sterling gained 0.1 percent to $1.2900.