Dollar hovers close to two-year peak on trade-war, growth worries

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Dollar hovers close to two-year peak on trade-war, growth worries
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The dollar held steady against its key rivals on Thursday as escalating Sino-U.S...

TOKYO - The dollar held steady against its key rivals on Thursday as escalating Sino-U.S. trade tensions forced investors to take shelter in safe-haven assets, including government bonds.

Against a basket of six major currencies, the dollar inched 0.03% lower to 98.113, hovering within reach of a two-year high of 98.371 reached a week ago. The index is up more than 2% for the year. Chinese newspapers on Wednesday warned that Beijing could use rare earth elements to strike back at the United States after U.S. President Donald Trump remarked he was “not yet ready” to make a deal with Beijing over trade.

The greenback’s status as the world’s reserve currency tends to attract safe haven bids in times of market turmoil and political tensions. The U.S. 10-year yields were last at 2.260%.

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