The euro weakened half a percent and other high-yielding currencies
such as the Australian dollar wilted on Monday as rising concerns over
an escalation in the trade dispute between the United States and its
partners sapped demand.
such as the Australian dollar wilted on Monday as rising concerns over
an escalation in the trade dispute between the United States and its
partners sapped demand.
The single currency also received a setback after German Chancellor
Angela Merkel was dealt a fresh blow when her interior minister offered
to quit in an escalating row over migration policy.
Angela Merkel was dealt a fresh blow when her interior minister offered
to quit in an escalating row over migration policy.
“More than the German political developments, the concerns over a
rising trade conflict is more worrying for global markets at this stage
and that is going to keep risk appetite muted,” said Esther Maria
Reichelt, an FX analyst at Commerzbank.
rising trade conflict is more worrying for global markets at this stage
and that is going to keep risk appetite muted,” said Esther Maria
Reichelt, an FX analyst at Commerzbank.
On Monday, the single currency <EUR=EBS> fell 0.5 percent at
$1.1633 in early London trading. It racked up its third consecutive
monthly loss against the dollar in June.
$1.1633 in early London trading. It racked up its third consecutive
monthly loss against the dollar in June.
Tension is growing ahead of a July 6 deadline when Washington is due
to impose $34 billion of tariffs on Chinese exports, with two surveys of
Chinese manufacturing out in the last few days showed a softening in
activity, partly due to softness in exports.
to impose $34 billion of tariffs on Chinese exports, with two surveys of
Chinese manufacturing out in the last few days showed a softening in
activity, partly due to softness in exports.
While economists expect the direct economic damage from those tariffs
to be relatively contained, at least for now, many see the reversal of
globalization having negative repercussions for years to come, lowering
companies’ longer-term growth expectations.
to be relatively contained, at least for now, many see the reversal of
globalization having negative repercussions for years to come, lowering
companies’ longer-term growth expectations.
Chinese stock markets fell 2.5 percent while its currency sank to
more than seven-month lows <CNY=CFXS> as investor concerns grew
about a widening trade conflict.
more than seven-month lows <CNY=CFXS> as investor concerns grew
about a widening trade conflict.
The dollar extended its gains against the yen to hit a fresh six-week high of 111.06 yen <JPY=EBS>.
The Japanese currency was unmoved by the Bank of Japan’s tankan
business sentiment survey, which showed a slight dip in big Japanese
manufacturers’ sentiment.
business sentiment survey, which showed a slight dip in big Japanese
manufacturers’ sentiment.
The Australian dollar <AUD=D3> weakened 0.5 percent against the
greenback while the Canadian dollar <CAD=D3> slipped 0.3 percent.
greenback while the Canadian dollar <CAD=D3> slipped 0.3 percent.
Source: Reuters (Reporting by Saikat Chatterjee; Additional reporting
by Hideyuki Sano and Tomo Uetake in TOKYO; Editing by Peter Graff)
by Hideyuki Sano and Tomo Uetake in TOKYO; Editing by Peter Graff)
