Investing.com – The U.S. dollar steadied after a drubbing the previous day, clawing back losses against safe-haven currencies as China took steps to limit weakness in the yuan and reassured investors that it wouldn’t weaponize its currency in its trade spat with the U.S.
The , which measures the green against a trade-weighted basket of six major currencies, rose by 0.15% to 97.63.
The dollar found its footing, led by gains against safe-haven yen and Swiss franc, as demand for safe havens eased somewhat on signs China is unlikely to deliberately weaken the yuan – to offset the impact of the U.S.-Sino trade war – after the People’s Bank of China set the daily currency limit of the yuan at a stronger-than-expected level,
The move comes a day after the Chinese’s central bank allowed the yuan to slip below 7 per dollar – a level it had previously vowed to protect – for the first time since 2008. Traders had feared that further action to weaken the yuan would risk additional tariffs being imposed by the U.S., and lead to a currency war. President Trump on Monday labelled China a “currency manipulator”
rose 0.49% to Y106.47 and climbed 0.41% to 0.977.
also supported the greenback after retreating from a session high of $1.221 to trade at $1.214, up just 0.01%, amid rising fears the U.K. could leave the European Union without a trade deal, referred to as a “hard Brexit.”
Senior EU and U.K. diplomats reportedly left Brussels with the impression that a no-deal Brexit is now the “central scenario” of the new U.K. Prime Minister Boris Johnson, according to reports in U.K. media.
fell 0.07% to $1.119, while added 0.58% to C$1.329 as the loonie came under pressure amid falling oil prices on fears the US-China trade will hurt oil demand.
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