The dollar and the yen strengthened on Tuesday as investors bid up safe haven assets amid tensions around global trade and strains in emerging market currencies.
Fears of a hit to global growth from U.S. President Donald Trump’s ‘America First’ protectionist policies have kept markets in a state of heightened anxiety for much of this year.
On Saturday Trump said there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with the talks to revamp NAFTA or he would terminate the trilateral trade pact.
“It seems that the dollar, helped by rising interest rates, and the yen, the typical haven currencies, are supported by the confusion in the rest of the world,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
