American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
The dollar rose to a one-year high against a basket of currencies on Thursday, gaining for a third straight session, as investors further boosted long-term bets on the currency following bullish comments this week on the U.S. economy by Federal Reserve Chairman Jerome Powell.
The greenback also climbed to a one-year peak against the yuan, as trade worries and reports Beijing would boost liquidity in the financial system pressured the Chinese currency. The People's Bank of China is channeling credit to small and medium-sized firms as the country looks set to loosen monetary conditions to lessen the impact of a U.S.-China trade war.
Easier monetary policy tends to weaken a currency. The dollar index, a gauge of its value against a basket of six major currencies, was up 0.01 percent to 95.09, after touching a one-year high at 95.652.
The dollar was up as lower-than-expected jobless claims bolstered rate hike expectations after two days of upbeat comments on the U.S. economy by the Federal Reserve's chairman.
On Tuesday and Wednesday, Powell said in congressional testimony he believed the United States was on course for years more of steady growth, and he carefully played down the risks to the U.S. economy of an escalating trade conflict.
The widening interest rate gap between the United States and other major markets has lifted the dollar and prompted analysts to expect further strengthening.
"If you look at the U.S., we're just outpacing everyone in terms of rate hikes," said Minh Trang, senior FX trader, Silicon Valley Bank in Santa Clara, California. "That's going to help the dollar long term, and it has helped the dollar in the short term as well, obviously."
The Chinese yuan fell 0.8 percent to 6.7701 yuan per dollar in offshore trading.
China's Ministry of Commerce said on Wednesday it would have to take further measures to compensate for losses caused by U.S. tariffs on steel and aluminum U.S. President Donald Trump's top economic adviser, Larry Kudlow, said on Wednesday he believed Chinese President Xi Jinping has blocked progress on a trade deal. China called Kudlow's assertions "shocking" and "bogus" on Thursday.
So far this year, the yuan has weakened roughly 4.4 percent versus the U.S. dollar.