Dollar Hits Four-month Low

The US dollar reached its lowest level in four months, and the Chinese yuan regained some losses from the previous decline, as investors adopted a wait-and-see attitude regarding the outcome of the tensions between the two countries.

The United States granted China until Friday to close its Houston consluate, on the back of allegations of “political provocation, and China vowed to respond, but those tensions led the Chinese yuan to decline and recorded its biggest drop in two months. However, the yen reversed some losses and returned to trade near $ 7.

US Secretary of State Mike Pompeo said the decision was taken because China was “stealing” intellectual property.

The US dollar index, which measures the strength of the greenback versus a basket of major currencies, had reached its lowest level since March 9th and had lost nearly 8% since the height of March 20. It has fallen 1.5% since the beginning of the year.