The U.S. dollar on Monday fell for the second straight trading day as fears over a trade war between the United States and China mount. The two biggest economies in the world continue to impose tariffs on each other, which is weighing heavily on most worldwide exchanges. Trading of currencies was light on Monday as many of the European markets were closed for the Monday Easter observance.
One senior currency market analyst said that trade tensions were putting a damper on market sentiment. China announced Sunday night that it will impose a 25 percent tariff on 128 products imported to the United States. Some of the products include pork, wine, nuts and fruit. The tariffs are expected to take effect immediately.
The dollar set a one-week high last Thursday, closing at 90.178 when compared to a group of six of the largest currencies in the world. The dollar did rise against the Japanese yen last week, but many analysts speculate the rise will be a short one due to the rising financial tension between the U.S. and China.
The Trump administration plans to impose additional tariffs on Chinese products imported to the U.S., according to reports. Analysts speculate that if the Trump administration imposes new tariffs on China, the world’s second-biggest economy will impose new tariffs as a countermeasure. Some analysts speculate that new tariffs by China could include products that are strategically vital such as airplane parts and soybeans.
In other market news, U.S. investors are eagerly awaiting important data to be released later this week. Non-farm payrolls for the month of March are expected by the end of the week. Analysts speculate that the data will pave the way for any future interest rate hikes by the Federal Reserve. Weekly jobless claims and the unemployment rate are expected out this week.