The United States Dollar is Firm Because US-China Tensions

Traders are worried about the rising tensions between China and the United States. Thus, on Tuesday, for a second consecutive day, the United States dollar edged higher. Meanwhile, thanks to a bounce in oil prices, the dollar of Australia gained.

Risk sentiment slightly improved on further easing of measures of lockdown. Thus, the gains of the dollar were marginal. The easing lockdown measures raised hopes that the global economy is likely to be close or just past the worst of the deep downturn.

Charalambos Pissouros is a senior market analyst at JFD Group. He said that investors had turned their gaze back to ease of the ‘stay at home’ measures. It happened simultaneously with the slowdown in both deaths and infected cases, helping sentiment.

Nevertheless, the dollar edged up 0.1% to 99.55 against a basket of its rivals. Thus, from a near two-week high of 100.83 in late April, it was not far away.

Dollar and Others

The United States President Donald Trump stepped up verbal attacks on China ahead of a November 3 presidential election. Thus, after it, the dollar strengthened. Nonetheless, it raised fears concerning a new trade war probability.

The Reserve Bank of Australia left its targets for the three-year government bond yields and cash rate unchanged at 0.25%. Thus, the dollar of Australia inched up more than 64 cents to $0.6454. Nevertheless, forecast there is a forecast that in the first half of the year, the economy will suffer its largest-ever contraction.

Public holidays in China and Japan lightened trade. Thus, in foreign trade, the yuan rose to 7.1195 per dollar. It recovered from a six-week low of 7.1560 hits during the last session. Nevertheless, it was well below the range it was in the previous month.

Norwegian crown and other commodity currencies advanced because oil prices bounced.

It is the current news of the market.