Forex - Dollar Slips, Yen Gains as Trade Fears Weigh

Investing.com - The dollar slipped lower against a basket of the other major currencies on Wednesday, as concerns over heightened trade tensions continued to weigh on market sentiment.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, slipped 0.11% to 94.26 by 03:19 AM ET (07:19 AM GMT), after gaining 0.45% on Tuesday, snapping four straight sessions of losses.

Easing concerns about U.S. trade policy had help boost the dollar, but investors remained cautious following further falls in Chinese stocks and the yuan overnight amid fears over the prospect of an all-out trade war.

The dollar was lower against the yen, with USD/JPY down 0.26% to 109.76. The Japanese currency is often sought by investors as a safe haven in times of geopolitical tensions and market turmoil.

The euro pushed higher against the softer dollar, with EUR/USD rising 0.16% to 1.1665.

The pound was little changed for the day, with GBP/USD at 1.3228.

The pound ended the previous session down 0.43% against the dollar after incoming Bank of England policymaker Jonathan Haskel said there may be more slack in the UK economy, which would weaken the case for interest rate hikes.

He added that the central bank has scope to cut rates slightly in case of an economic downturn

The trade sensitive Australian and New Zealand dollars were pressured lower, with AUD/USD easing to 0.7386. NZD/USD fell to a seven-month trough of 0.6812 overnight and was last at 0.6822.