Economic news

Dollar rises, yuan and Aussie dip on U.S. tariff fears

The dollar climbed on Wednesday, pushing the Chinese yuan towards recent weak point and hitting the Australian dollar on concerns of deepened trade row between the United States and China.

Photo: Reuters

The dollar index gained 0.2 percent versus a basket of major currencies before pulling back, while against the offshore yuan surged more than half a percent to as high as 6.8458 yuan, near the recent high of 6.8562.

The Australian dollar slid 0.3 percent while the euro lost 0.1 percent at $1.1682.

Against the yen the greenback edged up 0.2 percent to 112.10 as Tuesday’s promise by the BoJ to hold rates extremely low for a prolonged period continued to hit the Japanese currency.

Fresh numbers on Tuesday showed U.S. consumer spending rose firmly in June even as wage growth remained limited. The core PCE index, the Fed’s preferred inflation measure, jumped 1.9 percent from a year earlier for a third month in a row, near the Fed’s two-percent inflation target.

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