The U.S. dollar inched down against its Japanese counterpart on early Wednesday due to fears that the rising tension between China and United States might affect U.S. growth and the global economy.
The greenback was marginally down by 0.1 percent and closed at 106.50 yen after failing to extend its gains made on the previous session. The dollar rose more than 0.6 percent versus the yen on Tuesday as the main indices in Wall Street advanced and risk appetite improved.
We have to remember that the future of the U.S. dollar is currently clouded due to the ongoing U.S.-China trade tensions. The dollar index already lost as much as 2.2 percent in the course of 2018. Investors are now waiting for the non-farm payroll scheduled to be released on Friday. Results will definitely have significant effect on the performances of the greenback.
As to other currencies, the euro declined by 0.24% and closed at 1.2273. The British pound went lower by 0.20% towards 1.4072 per dollar.
The price of gold was left almost unchanged on Wednesday after the dollar fell. U.S. gold futures were slightly down by 0.1 percent towards $1,336.30 per ounce. Meanwhile, spot gold stayed at $1,332.55 an ounce after dropping more than 0.6 percent on Tuesday.