Dollar Up Over Rising U.S-China Tensions and U.S. Protest Fears
The dollar was up on Tuesday morning in Asia, with investors turning to the safe-haven asset even amid optimism over the global economic recovery from the COVID-19 virus.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.06% to 97.875.
In the latest retaliation between the U.S. and China, China ordered state-owned enterprises on Monday to postpone orders of U.S. agricultural products such as soybeans as well as cancel some U.S. pork orders.
The latest point of contention between the two countries is China’s approval of national security laws for Hong Kong and Macau.
Meanwhile, U.S. President Donald Trump threatened to use military force to control the protests that have broken out in dozens of U.S. cities over the death of George Floyd.
“There are some potential flashpoints such as U.S. demonstrations and China-U.S. tensions. But, on the whole, the market is still moderately risk-on,” said Analyst.
The USD/JPY pair was up 0.13% to 107.72 whilst the USD/CNY pair was down 0.04% to 7.1211.
The AUD/USD pair slipped 0.23% to 0.6782. The Reserve Bank of Australia is expected to keep interest rates steady when it meets later in the day.
The NZD/USD pair was down 0.22% to 0.6277 and the GBP/USD pair lost 0.05% to 1.2485.