Real crunch from Saudi Arabia's oil outage has yet to be felt    Tunisia's toppled ruler Ben Ali dies in Jeddah, body to be transferred to Mecca    BREAKING: Hossam El-Badry appointed as Egypt coach    Sisi Oks additional loan to fund Egypt's largest drainage system    Allianz Egypt allots $399K to promote UNICEF's vulnerable children initiative    Iran's foreign minister warns of 'all-out war' if hit for Saudi attack    'EFA have to first talk with Masry before national team duty,' says candidate coach Ihab Galal    Israel's Netanyahu calls on rival Gantz to form unity government with him    Bullet point previews of Premier League matches    US orders ‘substantial increase' of Iran sanctions    Felix Brych to referee Ahly-Zamalek Super Cup game in Egypt's Alexandria    Taliban suicide bomb in southern Afghanistan claims 20 more lives as election nears    US Fed cuts interest rates for second time since 2008, amid “uncertainties”    Google lining up to open new office in Cairo soon – official    Sudanese PM Hamdok flies to Egypt for talks    Trump bars California from setting stricter fuel standards    Danone Nations, DECATHLON launch series of initiatives, creating change    World at risk of pandemics that could kill millions    Mint, menthol e-cigarette liquids high in cancer-causing compound    Perils of gender and geography hamper global development    Saudi Arabia says full production restored within the month    'Egypt will not allow any country to impose its will on another in Ethiopian dam issue,' FM says    Egypt's new listing amendments mandate more women on boards    Egypt, Ethiopia at odds as talks over Blue Nile dam resume    5 plant-based soup recipes to warm your body and soul    Egypt's Ahly to train for Super Cup game against Zamalek immediately    Egypt says GERD talks with Ethiopia 'stumbled', next round in Khartoum in October    Tutankhamun Opera to debut with inauguration of Grand Egyptian Museum: Zahi Hawass    Egypt court sentence 6 to death for joining terrorist group, manufacturing explosives; 8 acquitted    'Al-Daheeh' host Ahmed El-Ghandour shortlisted for IBC's first 'Young Pioneer' award    Egypt's Sisi discusses education, terrorism at national youth conference    Sisi to open 8th edition of the National Youth Conference Saturday    Spotify buys music production marketplace SoundBetter    Egypt's PM discusses details of Al-Hussein Mosque renovation    Egypt's Baron Empain Palace to be reopen after renovation    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Cairo's historic Tahrir square to be renovated – PM    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Dollar drops as U.S.-China trade tension intensifies
Published in Amwal Al Ghad on 24 - 08 - 2019

U.S. dollar dropped broadly on Friday after President Donald Trump ordered U.S. companies to start looking for an alternative to China after Beijing imposed more tariffs on American goods, further escalating tension between the world's two largest economies in a prolonged trade dispute.
That triggered mass selling in the dollar, which fell from a three-week high against the euro and to one-week troughs versus the yen and Swiss franc. Benchmark U.S. 10-year Treasury yields also fell sharply. The dollar, however, strengthened against the Chinese yuan in the offshore market, hitting a two-week high
"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA," Trump wrote on Twitter. His tweet followed China's earlier move on Friday when it announced retaliatory tariffs against about $75 billion worth of U.S. goods, putting as much as an extra 10% on top of existing rates
"Clearly when you look at the U.S. yields and the dollar's reaction, there are concerns that these latest comments from Trump on China will push the U.S. into recession," said Marvin Loh, senior global markets strategist, at State Street in Boston.
Trump's comments overshadowed a speech from Federal Reserve Chair Jerome Powell, who did not announce a major stimulus measure to ease a worsening global economic outlook, but set the stage for further interest rate cuts.
Powell said the U.S. economy was in a "favorable place" and the Fed would act as appropriate to keep the current economic expansion on track.
"I don't really know what the market was thinking would be delivered, but if you're betting on another two or three cuts, you wouldn't be dissuaded by this speech based on the headlines," said Richard Franulovich, head of FX strategy at Westpac in New York.
Trump, however, was enraged by Powell's speech, saying he wasn't sure who was the bigger enemy, the U.S. central bank chief or Chinese leader Xi Jinping. "As usual, the Fed did NOTHING! It is incredible that they can ‘speak' without knowing or asking what I am doing, which will be announced shortly," Trump wrote on Twitter. "We have a very strong dollar and a very weak Fed. I will work ‘brilliantly' with both, and the U.S. will do great."
In midday trading, the euro rose 0.5 percent to $1.1134, after earlier touching a three-week low of $1.1052.
An index that tracks the dollar against six major currencies was down 0.55 percent at 97.64. The dollar fell to a one-week low against the yen and was last at 105.46, down 0.9 percent. It earlier hit a one-week high of 106.73.
Against the Chinese yuan, the dollar was up 0.6 percent at 7.13 yuan, after earlier touching a two-week high of 7.1332.
Source: Reuters


Clic here to read the story from its source.