New York: The dollar rose against most of the major currencies after China signalled it won’t flinch in a trade war.
US and European equities edged lower.
The Bloomberg Dollar Spot Index climbed for the fourth day in five sessions. The yuan reversed its gains following a rally triggered after China’s central bank on Friday made it more costly to short the currency. The pound weakened as Britain’s International Trade Secretary Liam Fox said a no-deal outcome for Brexit was more likely. The euro slipped after German manufacturers took a hit in June.
The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite fell. Carmakers gained in Europe while banks fell after HSBC’s earnings disappointed. PepsiCo Inc said its chief executive officer was stepping down. West Texas crude crept above $69 (Dh253) a barrel and most metals fell. The yield on 10-year Treasuries fell to 2.93 per cent.
Rhetoric in the trade war ramped up again this weekend, with US President Donald Trump saying he has the upper hand, and Beijing responding through state media that it is ready to endure the economic fallout. The Asian country on Friday stepped in to try to cushion the yuan after a record string of weekly losses saw the currency closing in on the milestone of 7 per dollar.
Elsewhere, Turkey’s lira fell for a sixth day, while a basket of emerging market currencies held steady.
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