New Update - Dollar hits fourth month high vs Yuan on trade session

The foreign exchange market in Europe in early trading was once again in a safe-haven mode. As the possibility of the US imposing new tariffs on Chinese imports increased, the yen appreciated and the RMB exchange rate fell.

A series of contradictory trade headlines on Wednesday confuse the market, but still expect an agreement between the world's two major economies, especially the Chinese Vice Premier Liu He will arrive in Washington later that day.

"They broke the deal!" President Donald Trump made a speech at a rally, reiterating his commitment to China's strict enforcement mechanism, no matter what agreement the two sides can reach.

The Chinese Ministry of Commerce responded overnight and warned that "the escalation of trade conflicts is not in the interest of the two countries and the people of the world."

The yuan fell to its lowest level since January and fell to 6.8141. The Australian dollar also hit a four-month low.

ING analysts Cristna and Carlo Cacuzzo said, "This week's USD/RMB movement is surprising, leaving the market free from their comfort zone," adding that they expect the renminbi's weakness to spread to other "active currencies." "For example, the Canadian dollar, the Korean won, the Indonesian rupiah and the South African Rand."

At 3 am EST (0700 GMT), the US dollar index, which measures the exchange rate of the US dollar against a basket of six major currencies, closed at 97.330, down 0.1% from late Wednesday, mainly due to the safe-haven currency yen and Switzerland. The franc fell. .

In other respects, the pound continued to be in a holding mode after the failure of the threat to British Prime Minister Theresa May. However, the cross-party agreement that hopes to successfully exit the EU is still very low.

The euro also continued to drift around $1.12, with no important economic data on the day.

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