The US dollar continued its gains today, reaching its highest level since August 24 at 95.60 against a basket of currencies as investors headed towards safe havens amid global trade tensions and pressure on emerging market currencies.
The fear of US protectionist policies to hit global economic growth has dominated markets for much of this year. Trump threatened not to have Canada in the North American Free Trade Agreement (NAFTA), as well as the continuing trade war between China and the United States.
The Australian dollar rose to its highest level since Friday at 0.7235 after the Reserve Bank of Australia kept interest rates unchanged at 1.50%, before retreating to 0.7170 currently.
On the other hand, the euro continued to decline after the manufacturing sector slowed to its lowest level in two years in August as the continuing threat of a trade war dominated the sector. The euro fell to its lowest level since August 21 at 1.1530.
Also, the pound fell to a one-week low of 1.2813 amid uncertainty about the progress of Brexit talks and the future of the Bank of England governor as well as the hearing for the inflation report before Parliament today, in which Mark Carney indicated that he would do all he could to get easy Brexit.
