US Dollar Drops Versus Japanese Yen
The US dollar remains under pressure, as tensions in US-China trade relations continue to increase after the US announced tariffs of $50 billion on imported goods from China and Beijing's retaliatory actions. The escalation of tensions in trade between the US and China could have a negative impact on the global economy and growth in the US. More directional drivers for the dollar this week will be the US payrolls data and comments by Federal Reserve Chairman Jerome Powell.
The dollar declined by 0.1% to 106.50 yen, giving back some of the gains made on Tuesday, when it rose 0.6% against the Japanese currency. The greenback gained on the yen the day before as risk appetite improved and Wall Street's main indexes advanced, helping the US currency stabilize after recent declines.
Gold prices increased, as dollar weakened after the US slapped tariffs on $50 billion worth imports from China. Prices for gold gained $1.70, or 0.13%, to $1339.00, after yesterday’s fall below $1330.00. Oil prices have recovered as equity markets veered higher as focus shifted back to inventory concerns after the American Petroleum Institute (API) reported a surprise draw of 3.28 million barrels of US crude.