US dollar grows amidst the clashes in Hong Kong
US dollar edged higher during early trading in Europe on May 26. Traders became more risk-averse as US-China relations became more tense because of the clashes in Hong Kong.
By 06:45 GMT the US Dollar Index gained 0.3% and reached 99.207. USD/JPY added 0.1% and reached 107.56. GBP/USD lost 0.2% and stood at 1.2308.
The situation in Hong Kong is becoming more unstable. The protesters came back to the streets and clashes with the police became more violent. Meanwhile, President Trump stated that US retaliation will be revealed in the nest few days. China has already committed to responding with countermeasures of their own.
The events impacted yuan as well. The currency tumbled down 0.4% and stood at 7.1604 per US dollar, continuing its long decline of the last four weeks.