Trade concerns boost dollar
The dollar is the primary beneficiary of trade conflict concerns.
The dollar consolidated near a one-week high against a basket of currencies on Monday, as tensions around global trade and a sell-off in emerging markets fueled demand for the greenback. President Donald Trump said on Saturday there was no need to keep Canada in the North American Free Trade Agreement. He warned Congress not to meddle in talks to revamp NAFTA or he would terminate the trilateral pact altogether. “Trade tensions are broadly supporting the dollar, but the market is hardly very conducive of risk,” said Viraj Patel, an FX strategist at ING in London. The U.S. currency’s status as the chief reserve currency makes it the primary beneficiary of concern over trade conflicts. Traders have bought the dollar against the British pound and the Canadian dollar, among others. The dollar was flat at 95.12 against a basket of major currencies, nearing its highest level since Aug. 27. It has gained nearly 7 percent since mid-April when trade tensions first arose.