Dollar Rises on Worsening US-China Relations on Hong Kong and Fees
Economy News _ Baghdad
The dollar rose on Wednesday and currencies exposed to trade fell after the US president threatened to step up trade war and China's condemnation of a US Senate measure supporting pro-democracy protesters in Hong Kong.
The Chinese yuan hit a fresh two-week low overnight after US President Donald Trump threatened to raise new tariffs on Chinese imports if the ongoing trade negotiations failed.
China condemned the US legislation aimed at protecting human rights in Hong Kong, saying the United States should stop interfering.
After four days of decline, the dollar rose 0.1 percent against the euro and a basket of currencies.
The Canadian dollar fell against the US dollar to its lowest level since October 11 after a speech by a senior deputy governor of the Bank of Canada (central bank) supported expectations of cutting interest rates.
The highly exposed currencies on trade have been hit by the deteriorating US-China relationship. The Australian and New Zealand dollars both fell 0.4 percent against the US dollar.
Norwegian krone fell 0.9 percent against the dollar and 0.7 percent against the euro.
The Swedish Krona fell, but less frequently, falling 0.4 percent against the dollar and 0.7 percent against the euro.
Demand for safe-haven currencies was little changed, with the yen gaining about 0.1 percent against the dollar and the Swiss franc steady at around 0.9905.