Forex - U.S. Dollar Flat Amid Trade Tensions

20 May 2019, 14: 50
© Reuters.

The U.S. dollar was flat on Monday following increased trade tensions after the White House black listed Chinese giant Huawei.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.1% to 97.748 as of 10:23 AM ET (14:23 GMT).

Google (NASDAQ:GOOGL) and other companies announced over the weekend that they have stopped doing business with Huawei, causing a massive equity sell-off and uncertainty over how trade negotiations between the U.S. and China will pan out.

Meanwhile, tense rhetoric between the U.S. and Iran continue after U.S. President Donald Trump tweeted about the “official end of Iran.”

Iran’s Foreign Minister Mohammad Javad Zarif accused Trump of distributing “genocidal taunts” in response, adding that the president should “try respect.”

The dollar was down against the safe-haven yen, with USD/JPY falling 0.1% to 109.93. Japan’s economy posted a surprising expansion in the last quarter, but worry over less spending overshadowed the report.

Elsewhere, the euro gained, with EUR/USD up 0.1% to 1.1167 while USD/CAD fell 0.2% to 1.3420. Sterling inched up slightly, with GBP/USD rising 0.1% to 1.2733.