Trade War Truce Causes Dollar to Dip – 3 December 2018

After the U.S. and China decided to call off an ongoing trade war, the dollar took a dip as investors sold the currency and put their money elsewhere. The offshore yuan gained roughly 1 percent to 6.879, while the dollar index dropped 0.2 percent against six major currencies. The euro gained 0.2 percent against the dollar, and the Australian dollar rose 0.5 against the greenback. After a talk during the weekend, U.S. President Trump and Chinese President Xi Jinping decided to ceasefire in their trade war.  Sterling fell to its lowest level since the end of October, with Brexit concerns encouraging investors to sell the currency. The U.S dollar also dipped 0.6 percent against the Canadian dollar.