For the last few weeks, the world economy was on the verge of a trade war between US and China. Both the countries started putting tariffs on the goods as a part of the economic rivalry. Warmongering by President Donald Trump and retaliation form his Chinese counterpart heightens the tensions among everyone.
Perplexed by the outcome of the situation, investors started flocking around the safe-haven currency like Japanese Yen. This deviation from US dollar initiates the plunge of the dollar into a rock bottom. In fact, the values reach lowest of this year. Amid this tension, British currency also suffers a nosedive of 0.16% this year.
However, things seem to be changing. A recent negotiation between China and USA has slackened the tension. Moreover, both parties are expected to reconsider the newly imposed tariff. At least the expectation echoed in the statement of Chinese Commerce minister this week.
Because of this ease in the situation, US dollar sees a slight rise in its value. From last week, the currency sees some stability and a shallow plunge. All the credits go to bilateral talks between the higher officials of the two superpowers. Now the greenback will gain a part of its lost position in the FOREX market.