Investing.com – The greenback was flat on Monday and the safe haven yen rose, after an unexpectedly sharp fall in China’s exports increased worries over the health of the global economy.
The , which measures the greenback’s strength against a basket of six major currencies, inched down 0.07% to 95.20 as of 10:25 AM ET (15:25 GMT), while slipped 0.26% to 108.24.
Chinese exports fell by the most in two years in December, while imports also declined. The numbers increased worry that new U.S. tariffs on Chinese goods are hurting China’s economy. Separately, data also showed that China had its biggest-ever trade surplus with the U.S. last year, which could hurt ongoing trade negotiations with the White House.
The dollar has fallen in recent weeks, as investors expect the Federal Reserve to pause its rate of monetary tightening. Fed Chairman Jerome Powell reiterated last week that the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable.
Elsewhere, sterling recovered slightly after reports that Theresa May has supposedly instructed her party to support an amendment with a Dec. 2021 end date to the backstop agreement.
inched up 0.15% to 1.2859.
The euro was mostly flat, with at 1.1463.
The risk sensitive Australian and New Zealand dollars, with falling 0.2% to 0.7199 and down 0.1% to 0.6822.
Both currencies had gained around 1.5% versus the dollar last week as risk sentiment improved on hopes for both a U.S.-Sino trade deal and more aggressive stimulus from Chinese policymakers to support its ailing economy.
-Reuters contributed to this report.
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