Investors seeking safe haven support the yen and the dollar
TOKYO (Reuters) - Japan's currency remained near a seven-month high on Tuesday and the US dollar rose, as investors worried over the China-US trade war, protests in Hong Kong and the collapse of the Argentine peso pushing them to seek safe havens.
Investors rushed to buy the yen amid mounting trade war between China and the United States and concerns about a slowing global economy. The Japanese currency, along with the dollar and the Swiss franc, are safe havens in times of uncertainty.
The yen received fresh support from growing turmoil in Hong Kong and surprising results in an election in Argentina that sent the country's peso, stocks and bonds down.
By 0720 GMT, the yen was little changed at 105.32 to the dollar. The Japanese currency touched 105.05 yen to the dollar on Monday, its highest level in seven months and its strongest level since early 2018, except for a brief collapse in January.
The dollar index, which tracks the performance of the greenback against a basket of six currencies, rose 0.2 percent to 97.563.
The euro was down 0.2 percent at $ 1.1196. German inflation data, in line with expectations, provided little support for the single currency.
The yuan posted little change in overseas transactions at 7.104 after the People's Bank of China set the mid-point at an 11-year low, which is still stronger than expected.
The Argentine peso lost nearly 15 percent to $ 52.15 on Monday after hitting a record low of 61.99.
Sterling fell 0.2 percent to $ 1.2052 near $ 1.2015 touched on Monday, its lowest level in more than two years as fears of Britain's secession from the European Union dominated without a deal.