Trade tensions between the U.S. and China are starting to pull foreign-exchange markets into the arena. Yet far from embracing their currencies as a weapon, many countries are being forced to take a defensive posture against the almighty dollar. Central banks seem more intent on keeping their currencies steady and stopping money from escaping rather than engaging in devaluations to boost their competitiveness in trade. Policy makers in China, South Korea and Indonesia were among those taking steps to buoy their currencies as the prospect of more rapid depreciation raised ...

The dollar fell on Friday from a two-year high against a basket of major currencies after orders for U.S.-made capital goods fell, further evidence that manufacturing and the broader economy are slowing, due in part to the U.S.-China trade dispute. The weaker-than-expected data, a closely watched proxy for business spending plans, drove the dollar lower and added to a fall which began Thursday following a report that showed manufacturing activity hit its lowest level in almost a decade in May. Taken together, the reports suggested a sharp slowdown in U.S. ...

Sterling has been the focus for global investors rattled by Britain’s planned departure from the European Union, plunging immediately after the vote to leave and then moving wildly ever since on Brexit-related headlines. Investors have largely been positioned for the pound to weaken — adding to those bets as Britain first struggled to agree a withdrawal plan with Brussels, and then as lawmakers in London this year rejected the deal three times. Recent falls in the pound have been pronounced because investors had cut back on short positions, hoping Prime ...

As China’s yuan slips to historically weak levels against the dollar, the central bank’s atypical light touch is spurring speculation that policymakers want to be more judicious in their intervention and have no specific target for the currency. The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute took a turn for the worse with tariff increases early this month. It is now less than 0.1 yuan away from the 7-per-dollar level authorities have in the past indicated as a floor. A weakening yuan ...

The British pound was seeing muted action against rivals Friday as U.K. Prime Minister Theresa May announced her resignation, after her deals to usher Britain out of the European Union failed and she lost the confidence of her political inner circle Sterling was trading at $1.2671 versus the dollar, compared with $1.2657 late Thursday in New York, a gain of about 0.1%. Meanwhile, the shared currency was wobbly, most recently, buying GBP0.8836, versus GBP0.8831, according to FactSet data. May’s planned resignation — she will stay on until a replacement is ...

Investors bet most Asian currencies will come under further pressure, a Reuters poll showed, with trade tensions between the United States and China firmly dominating headlines once again. With diminishing hopes of a long-awaited trade deal between the world’s top two economies, the mood across markets have been apprehensive with investors shifting money to safer bets. Investors, who were bullish on China’s yuan for much of this year until April end, have since raised their short positions to their highest in six months, the poll of 12 respondents showed. Trade ...

The dollar edged away from two-year highs on Friday after weak U.S. manufacturing activity data sparked worries that the trade conflict with China may hurt the world’s largest economy and affect the currency’s safe-haven status. Against a basket of six major currencies, the dollar was down 0.2% at 97.686 in early European trade and 0.7% off a two-year high of 98.371 hit the previous session. The fall followed overnight data showing manufacturing activity hit its lowest level in almost a decade in May, suggesting a sharp slowdown in U.S. economic ...

China has ample policy tools to cope with yuan fluctuations and the country is able to keep the currency basically stable, a central bank vice governor said in remarks published on Thursday. The yuan fell against the dollar on Thursday to its lowest level in almost six months as investors worried about the impact of the Sino-U.S. dispute on the country’s tech sector. The currency has lost more than 2.6 percent this month. “At present, although there is some occasional overshooting in the exchange rate, the market situation is stable,” ...

Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes. Central banks across Asia are moving to defend their currencies from recent declines as escalating trade tensions between the U.S. and China weigh down exports and economic growth. Officials in Beijing, Seoul and Jakarta were among those taking steps on Wednesday to arrest weakness that’s affected most key currencies in Asia this month. The yen, a traditional haven, is the main exception to the trend. “Chinese authorities are trying to cap ...

The U.S. dollar retreated after hitting its highest level in two years as weaker domestic data and the threat of economic fallout from the trade war with China increased expectations for an interest-rate cut this year. Against a basket of six rivals, the dollar erased gains made earlier in the day, last trading down 0.16% at 97.885. The dollar move pulled the euro with it, which was up 0.22% to $1.118. Sales of new U.S. single-family homes fell from near an 11-1/2-year high in April as prices rebounded and manufacturing ...

A no-deal exit by the United Kingdom from the European Union would push sterling to its lowest against the euro since the global financial crisis a decade ago, UBS Wealth Management said on Thursday as uncertainty over the chaotic process deepens. The asset management division of UBS said in a note the UK currency would hit 97 pence, just short of parity against the euro. That would be its weakest since December 2008. It also predicted it would fall to $1.15, its lowest since a flash crash in October 2016. ...

The dollar hit its highest level in a month as economic and political uncertainties swept through Europe and Asia, pinning down most major currencies such as the euro and the yuan. Worries over German manufacturing, the effect of a trade war on Asian economies and deepening concerns over Brexit and upcoming European parliamentary elections all make it an uncomfortable time for many countries in Europe and Asia. While the United States is not without its own worries — a trade conflict with China being a major one — investors see ...

The U.S. dollar held near a one-month high on Wednesday after minutes from the May Federal Open Market Committee meeting showed officials agreed that their current patient approach to setting monetary policy could remain in place “for some time.” Policymakers saw little need to change rates in either direction. A rate hike in 2019 is unlikely, even as the U.S. economy continues to grow and inflation remains muted, the minutes showed. “People were looking for any type of pessimism that would lead to (the Federal Reserve) cutting rates. But at ...

Central banks across Asia are moving to defend their currencies from recent declines as escalating trade tensions between the U.S. and China weigh down exports and economic growth. Officials in Beijing, Seoul and Jakarta were among those taking steps on Wednesday to arrest weakness that’s affected most key currencies in Asia this month. The yen, a traditional haven, is the main exception to the trend. “Chinese authorities are trying to cap the yuan from weakening because they know the harm caused by capital flowing out from the region will be ...

Short Australia’s risk-sensitive currency against the haven yen. That is emerging as one popular currency trade as investors look to profit from the US-China trade war. With the conflict escalating, Citigroup predicts the Aussie-yen will slip to about 72.75 in a few weeks, which marks a drop of more than 4 per cent from a level of 76.04 in Asia Wednesday. Jeffrey Halley, a 30-year currency trading veteran and market analyst at Oanda Asia-Pacific, reckons the pair could fall below 70 in the next two months. “Aussie-yen is the best ...