The dollar stays firm for one-week highs against a currency basket on Monday as concerns over global trade tensions and instability.
Concerns over an escalation of the trade row between the U.S. and China weighed on market sentiment, with the Trump administration preparing to impose a fresh round of tariffs on Chinese imports. As U.S. President Donald Trump said last week he was ready to implement tariffs on an additional $200 billion worth of imports from China as soon as Thursday. The step would escalate the trade row with Beijing, given that the U.S. has already slapped tariffs on $50 billion of Chinese imports. Trump has also threatened to withdraw from the World Trade Organization, a move that could undermine the system of global trade.
Meanwhile, trade talks with Canada remained at an impasse after stalling on Friday.
Trade volumes were expected to remain thin, with U.S. financial markets closed on Monday for the Labor Day holiday.
USD/JPY dipping to 110.98.
EUR/USD inched higher at 1.1616.
GBP/USD went down to 1.2906 after the European Union’s chief Brexit negotiator Michel Barnier said he is strongly opposed to the U.K. government’s so-called Chequers proposals on future trade.