The dollar slipped 0.07 percent to 110.54 yen, retreating from a three-week high of 110.9 yen. ADVERTISEMENT"The dollar-yen certainly tends to be a little negatively impacted by increasing concerns about a trade war," he said. "It's not clear to me that the rising risk of a trade war has a very clear impact on the dollar broadly. "Net-net it is hard to say what impact a trade war will have on the dollar in the near term," he said. The Canadian dollar weakened to a fresh near one-year low against its U.S. counterpart as trade tensions between U.S. and China intensified and domestic data showed a surprise drop in manufacturing sales.
FOREX-Dollar rises as trade tensions attract safe-haven bids
"The dollar seems to have benefited from safe-haven flows ... as trade tensions and political developments in Europe have reduced investors' appetite for risk," said Oliver Jones, market economist at Capital Economics in London. But Jones noted that even if global and trade worries ease, the dollar will remain supported. Latest positioning data remains broadly dollar-supportive and is an extension of themes seen in currency markets in recent days. A rising dollar also translates into tightening financial conditions for broader financial markets given the U.S. currency's dominance in global financing and trading markets. GERMAN CONCERNS The euro fell 0.6 percent to $1.1615 on concerns over political developments in Germany.
FOREX-Dollar rebounds from early lows as trade tensions rise
referring to With tensions rising, the Chinese currency weakened to a fresh six-month low as expectations grew that Beijing will let the yuan weaken more in coming days to soften the impact of trade tariffs by the United States. "A lot of the large bets in currency markets such as long euros or short Swiss francs have been broadly unwound and we are in a very headline driven environment," said Paul Bednarczyk, head of G10 FX at Continuum Economics in London. The dollar rebounded smartly against a basket of currencies from a one-week low hit in Asian trade to rise 0.3 percent on the day at 94.55. The Chinese currency in the offshore market weakened 0.7 percent to 6.5811 yuan per dollar, its lowest level since late-December 2017. The euro edged 0.3 percent lower at $1.1672, extending its recovery from its 11-month low of $1.1508 touched on Thursday.FOREX-Dollar falls to 2-week low vs yen on renewed trade tensions
The dollar, however, began to sag towards the end of last week as U.S. yields lost their lift amid heightened trade tensions between Washington and the European Union. "The euro is on a technical bounce but whether it can retain the uptrend depends on how the US-EU trade tensions pan out," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. Commodity-linked currencies dipped as a surge by crude oil prices ran out of steam amid the latest round of trade jitters. The Aussie had fallen to a one-year low of $0.7394 last week, hurt by the Sino-U.S. trade spat. The loonie had brushed a one-year low of C$1.3384 last week, buffeted by volatility in crude oil prices.
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