Forex- U.S. Dollar Falls on Trade War, Treasury Yields

September 17, 2018 at 04:28PM

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The U.S. dollar was lower against other currencies on Monday amid renewed trade war fears and a rise in U.S. treasury yields .

U.S. tariffs on about $200 billion worth of Chinese imports could be announced as early as Monday, Reuters reported. China is likely to decline proposed trade talks with the U.S. later this month if the tariffs are pushed through and will look at retaliation steps.

The tariff level will probably be about 10%, below the 25% the White House originally was considering for this round of tariffs, The Wall Street Journal reported.

Meanwhile, U.S. government debt prices inched lower on Monday, pushing the 10-year yield to as high as 3.022%, the strongest level since May 22.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, slumped 0.41% to 94.12 as of 11:28 AM ET (15:28 GMT).

The euro and sterling gained ground amid positive developments in Brexit talks.

The EUR/USD increased 0.52% to 1.1683, while the GBP/USD jumped 0.50% to 1.3135.

Elsewhere, the dollar fell against the safe-haven yen, with USD/JPY down 0.04% to 112.01. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

The Australian dollar was higher, with AUD/USD up 0.36% to 0.7180, while NZD/USD rose 0.47% to 0.6578.


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