January 27, 2023

Dollar up as trade war concerns weigh, oil prices soar

LQDFX news blog: Dollar up as trade war concerns weigh, oil prices soar

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The greenback increased on Tuesday amid concerns regarding a possible escalation in trade conflict between the United States and China. The dollar index, an index of the value of the US dollar relative to a basket of foreign currencies, rose by 0.5%.

The public comment period on a U.S. proposal for new tariffs on Chinese goods is set to end on Thursday. After that period the U.S. administration may impose tariffs on $200 billion more of Chinese imports. Such duties of up to 25% form part of Trump’s efforts to pressure Beijing to end harmful trade practices.

Oil prices soar following the evacuation of two Gulf of Mexico oil platforms in preparation for a hurricane. Concerns regarding limited supply and market tightening led oil prices to new highs. Brent crude futures inched up 1.10 dollar a barrel, while U.S. crude futures were up 1.60 dollar a barrel from their last close.

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Sources: Reuters, CNN money, BBC

PLEASE NOTE The information above is not investment advice.