The American dollar continued to be the dominant currency against the leading international currencies of the world on Tuesday. The ongoing tension between the European Commission and the Italian government and the continuation of the trade cold winds blowing between the United States and China have given the US dollar quite a momentum.
The Euro was trading at around 1.13 against the dollar on Tuesday which became an important topic of analysis on the day. Nordea's forex analyst Niels Christensen was quoted by Reuters as, "Trade wars, a recovery on equity markets and poor data out of Europe and stronger data in the US.
I don’t think the euro will bounce back. There’s no reason for the ECB (European Central Bank) to start sounding more hawkish unless inflation surprises." The Chinese yuan came close to crossing the 7-number mark as it traded at 6.9 against the dollar.
The American president Donald Trump and the Chinese premier Xi Jinping are expected to have a bilateral meeting against the backdrop of the G20 meeting in November in Argentina. However, given that Trump has stated that the USA would be levying duties on all Chinese imports by December if the talks do not bring about any favourable results, all eyes have become focused on this all-important meeting.
Meanwhile, the Japanese yen also conceded ground to the dollar on Tuesday. The yen was trading at around 112.85 against the dollar, which came to a loss of about 0.4%.