The dollar fell to a two-week low against the yen on Monday as a
latest flare-up in global trade concerns dented investor risk appetites
and drove down U.S. yields.
The greenback was down 0.4 percent at 109.54 yen JPY= after dropping to 109.45, its weakest since June 11.
Investors steered from risk, with Asian equities in retreat and Treasury yields declining, after the Wall Street Journal reported the U.S. Treasury Department is crafting rules that would block firms with at least 25 percent Chinese ownership from buying U.S. companies involved in “industrially significant technology”.
The report added to the sense of caution felt after U.S. President Donald Trump on Friday threatened to impose a 20 percent tariff on all cars imported from the European Union. The EU responded by saying it will have no choice but to retaliate to such a move.
This week’s U.S. indicators include housing-related data on Monday, the Conference Board’s consumer confidence index on Tuesday, durable goods orders on Wednesday and personal consumption expenditures (PCE) numbers on Friday.
The dollar index against a basket of six major currencies stood at 94.559 .DXY having retreated from 95.529, its highest level since July 2017, scaled early on Friday.
The greenback had climbed to the 11-month peak as higher U.S. yields underlined the divergence in monetary policies between the United States and Europe.
The dollar, however, began to sag toward the end of last week as U.S. yields lost their lift amid heightened trade tensions between Washington and the European Union. The 10-year Treasury note yield US10YT=RR fell to a one-week low of 2.871 percent on Monday.
Investors steered from risk, with Asian equities in retreat and Treasury yields declining, after the Wall Street Journal reported the U.S. Treasury Department is crafting rules that would block firms with at least 25 percent Chinese ownership from buying U.S. companies involved in “industrially significant technology”.
The report added to the sense of caution felt after U.S. President Donald Trump on Friday threatened to impose a 20 percent tariff on all cars imported from the European Union. The EU responded by saying it will have no choice but to retaliate to such a move.
This week’s U.S. indicators include housing-related data on Monday, the Conference Board’s consumer confidence index on Tuesday, durable goods orders on Wednesday and personal consumption expenditures (PCE) numbers on Friday.
The dollar index against a basket of six major currencies stood at 94.559 .DXY having retreated from 95.529, its highest level since July 2017, scaled early on Friday.
The greenback had climbed to the 11-month peak as higher U.S. yields underlined the divergence in monetary policies between the United States and Europe.
The dollar, however, began to sag toward the end of last week as U.S. yields lost their lift amid heightened trade tensions between Washington and the European Union. The 10-year Treasury note yield US10YT=RR fell to a one-week low of 2.871 percent on Monday.
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