Dollar dives as threat of global trade war and Trump’s move on Taiwan come to the fore
London — The threat of a global trade war and a steady message from the Federal Reserve on US interest rates pushed the dollar to its lowest in more than a month on Thursday and took Europe’s main share markets into the red. It was the dollar’s third decline in four sessions and helped Britain’s pound to a six-week high before a Bank of England meeting expected to lay the foundations for another UK rate increase in coming months. The Fed raised its key rate by 25 basis points to 1.75% on Wednesday and flagged at least two more increases as being likely this year — but it stopped short of pointing to the three that some economists had been predicting. China also nudged up its borrowing costs overnight, as Beijing braced for new tariffs from US President Donald Trump on Chinese imports worth as much as $60bn. Not all Fed bulls were discouraged, though. "Over the balance of the year we do think they will move to four hikes," said JP Morgan Asset Management’s Seamus Mac Góráin, highligh...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.