On Tuesday, the yen rose against the US dollar. Concerns over the recent escalation of the ongoing trade war between the US and China have led to increased demand for defensive assets.
This month, the world’s stock markets fluctuate after the developments in a trade conflict. U.S. President Donald Trump said on Monday that Chinese officials called him to continue trade negotiations. The Chinese side refused to confirm this statement. Trump’s statements helped to slow down a sharp drop in world stock markets after the United States and China announced a planned increase in trade duties on each other’s goods on Friday. However, concerns about the trade conflict remain. Since there is no clear path to resolve the conflict, which has a devastating effect on the entire global economy.
By 9:00 London time, the dollar depreciated by 0.37% against the yen to 105.72. The yen is considered the currency of the “safe haven”, the demand for which has traditionally increased during times of political or economic instability. The Japanese currency also rose by 0.6% against the Australian and New Zealand dollars.
The US dollar index, which shows the purchasing power of the dollar against a trade-weighted basket of six major currencies, fell by 0.17% to 97.81
The official yuan rate has been updated for at least 11.5 years due to fears that the ongoing trade conflict is causing significant damage to the Chinese economy. The euro exchange rate changed slightly at the position of 1.1106.
The British pound was trading at 1.224 after falling by 0.5% on Monday. Investors have changed their minds on whether British Prime Minister Boris Johnson will be able to convince the EU of the terms of Brexit.
On Monday, Johnson said that he was ready to postpone Brexit negotiations with EU leaders to the last moment before October 31 and, if necessary, decide on leaving the EU without a deal that day.