The dollar is still strong this morning, benefitting from its safe haven status as US stocks decline.
Dollar strength was also caused by rising tensions between the US and China, which have been sparked by President Trump. Trump has declared that, if re-elected, he wants to US to ‘decouple’ from China, sparking concerns over the future of the US economy. ‘Decoupling’ would involve separating the two economies and stopping any trade between them.
The dollar has also risen on news that AstaZeneca have had to pause their vaccine trial after a participant experienced an adverse reaction. Investors are therefore choosing safe-haven currencies, such as the greenback.
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