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FOREX-Yen, Swiss franc rise on renewed U.S.-China trade tension

Published 12/04/2019, 05:10 AM
Updated 12/04/2019, 05:16 AM
© Reuters.  FOREX-Yen, Swiss franc rise on renewed U.S.-China trade tension
USD/JPY
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USD/CHF
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* U.S.-China deal may have to wait until after 2020 election-Trump
* Dollar whacked vs yen, Swiss franc by trade tensions
* Yuan hits weakest since late October
* Trump impeachment moves gather pace this week
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Graphic: U.S. dollar/Chinese yuan https://tmsnrt.rs/2P9oKW1

(Adds new comment, U.S. House impeachment report, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 3 (Reuters) - The safe-haven yen and Swiss franc rallied against the dollar on Tuesday
as risk appetite eased after U.S. President Donald Trump said a trade deal with China might have to wait
until after the 2020 U.S. presidential election.
China's offshore yuan fell to its weakest level versus the dollar since October after Trump's
comments, while the yen hit a two-week high and the Swiss franc climbed to a four-week peak.
The surprise statement hit the dollar broadly as investors dumped the currency, which has tended to
rise when optimism over a trade deal has grown. Market participants have long been waiting for a final
trade deal, especially as both countries appeared to be nearing a preliminary one.
Trump said he had no deadline on agreement with Beijing, sparking a selloff in equities. The news followed statements from Trump on Monday, saying his administration would impose tariffs on
metal imports from Argentina and Brazil and likely impose more on a range of French goods.
"This is just a never-ending cycle of trade talks that is going to provide a thorn on this heavily
anticipated global growth rebound," said Edward Moya, senior market analyst, at OANDA in New York.
"Even though the U.S. consumer still looks strong, the risk of Trump becoming a grinch is growing. We
may not be able to see that Santa rally and that may translate to strong demand for safe havens such as
the yen and Swiss franc."
Analysts pointed out though that Trump's missives on trade came at a time when impeachment
developments are in focus this week. Trump has been accused of improperly pressuring Ukraine to probe
former vice president Joe Biden, a political rival in the 2020 presidential election.
U.S. House Democrats leading the impeachment inquiry into Trump released a report on Tuesday detailing
their case against the president. The report said Trump used "the powers of his office to solicit foreign
interference on his behalf in the 2020 election." The report was prepared for the House Judiciary Committee, which is scheduled to kick off hearings on
Wednesday as it begins to consider drafting articles of impeachment to be laid before the full House.
The report though had minimal impact on the currency market.
"The impeachment story is not going to go away soon, but I think the markets are immune to it right
now," said OANDA's Moya. "There is nothing that is going to sway the Senate. I can't see Trump being
unseated."
In afternoon trading, the dollar fell 0.3% against the yen to 108.60 yen JPY= , hitting a two-week
low of 108.49 earlier. Against the Swiss franc, the dollar also slid, down 0.4% at 0.9870 franc CHF= .
Earlier, the greenback hit a four-week trough of 0.9858 franc.
The dollar index slipped 0.1% overall to 97.738 .DXY .
China's offshore yuan was a big casualty as well, with the dollar rising 0.4% to 7.0695 yuan
CNH=EBS , its highest since late October.

========================================================
Currency bid prices at 3:51PM (2051 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1082 $1.1077 +0.05% -3.37% +1.1093 +1.1066
Dollar/Yen JPY= 108.6100 108.9800 -0.34% -1.50% +109.2000 +108.4900
Euro/Yen EURJPY= 120.37 120.72 -0.29% -4.63% +120.9600 +120.2500
Dollar/Swiss CHF= 0.9869 0.9911 -0.42% +0.56% +0.9926 +0.9858
Sterling/Dollar GBP= 1.2995 1.2936 +0.46% +1.87% +1.3011 +1.2931
Dollar/Canadian CAD= 1.3292 1.3308 -0.12% -2.53% +1.3321 +1.3283
Australian/Doll AUD= 0.6844 0.6817 +0.40% -2.91% +0.6862 +0.6815
ar
Euro/Swiss EURCHF= 1.0939 1.0982 -0.39% -2.80% +1.0993 +1.0928
Euro/Sterling EURGBP= 0.8527 0.8559 -0.37% -5.09% +0.8565 +0.8513
NZ NZD= 0.6518 0.6501 +0.26% -2.96% +0.6533 +0.6494
Dollar/Dollar
Dollar/Norway NOK= 9.1857 9.1638 +0.24% +6.33% +9.1935 +9.1361
Euro/Norway EURNOK= 10.1818 10.1529 +0.28% +2.78% +10.1885 +10.1238
Dollar/Sweden SEK= 9.5286 9.5405 -0.06% +6.30% +9.5517 +9.4938
Euro/Sweden EURSEK= 10.5617 10.5681 -0.06% +2.90% +10.5779 +10.5220

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U.S. dollar vs offshore Chinese yuan https://tmsnrt.rs/2P9oKW1
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