The dollar returned to touch its 11-month high against a basket of currencies at 95.30, amidst the escalating trade conflict that prompted investors to buy higher-yielding currencies, while safe haven currencies such as the Swiss Franc and Japanese Yen remained well supported.
The euro fell during today's trading session to trade higher than level of support at 1.1550 and one of the ECB monetary policy makers attributed that weakness to the interest rate differential with the United States.
Also, the Australian dollar has been affected by China's trade tensions, hitting a 13-month low against the US dollar at 0.7347. The pound is still struggling with the awaited interest rate decision tomorrow and it is widely expected that interest rates will remain unchanged and expectations are set for a rate hike at the August meeting.
