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Yen rises to dollar and euro

Yen rises to dollar and euro

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Jim Anderson - Public Relations

The US dollar rises against the euro and declined against the yen, while the Australian and New Zealand dollar dell amid falling demand for commodity currencies due to investor anxiety over the protracted trade dispute between the US and China and the slowdown in global economic growth.

Commodity currencies remain under pressure. Their weakness is due to “continuing concerns over the prospects for global economic growth after the escalation of the US-Chinese trade war.”

The official representative of the Ministry of Commerce of China, Gao Feng, said on the eve that China will not immediately respond to the new increase in duties announced by US President Donald Trump last week.

Beijing didn't leave unanswered the previous steps of the United States, which introduced new duties on Chinese goods, and failure to act this time could mean a change in strategy, experts say.

The US Department of Commerce revised its estimate of GDP growth in the second quarter to 2% in terms of annual rates from the previously announced 2.1%. This coincided with the forecasts of analysts. Meanwhile, the number of initial applications for unemployment benefits in the US last week amounted to 215 thousand, which roughly corresponds to the expectations of analysts and is a low value, indicating a strengthening of the labor market in the country.

As of 9:48 Moscow time, the euro fell 0.15% to $1.1040 from $1.1057 at the close of the previous session. The value of the single European currency to the Japanese currency was down 0.30% and amounted to 117.43 yen compared to 117.78 yen on Thursday. The dollar depreciated by 0.12% and is 106.39 yen against 106.52 yen.