Dollar Edges Higher as Trade Tensions Build
November 21 2019 - 6:18PM
Dow Jones News
By Ira Iosebashvili
The dollar crept higher Thursday, as investors awaited
developments in trade talks between the U.S. and China.
The WSJ Dollar Index, which measures the U.S. currency against a
basket of 16 others, was recently up 0.1% at 90.92.
China's chief trade negotiator late last week invited his U.S.
counterparts for a new round of face-to-face talks, according to
people briefed on the matter, The Wall Street Journal reported
Thursday. Chinese officials hope the negotiations can take place
before the Thanksgiving holiday, but the U.S. side hasn't committed
to a date.
On Wednesday, concerns that the two sides won't reach an
agreement this year grew after President Trump criticized China's
efforts to reach a trade deal.
Some investors head to dollar-denominated assets when trade
uncertainties arise because they believe the U.S. is better able to
withstand a trade conflict than other countries.
The dollar has also been helped by a darkening global growth
picture that has made U.S. assets a more attractive alternative to
those in other countries.
The Organization for Economic Cooperation and Development said
Thursday it expects global growth to increase this year at the
slowest pace since the financial crisis.
In fixed-income markets, the yield on the 10-year benchmark U.S.
Treasury note was recently 1.771%, up from 1.737% on Wednesday.
Yields rise when bond prices fall.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
(END) Dow Jones Newswires
November 21, 2019 18:03 ET (23:03 GMT)
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