The dollar fell against the yen and Swiss franc on Wednesday after China retaliated against the Trump administration’s plan to slap tariffs on Chinese goods, proposing a list of similar duties on a wide range of U.S. imports.
In the midst of the U.S.-China trade tension, the dollar has weakened in four of the last five sessions against the yen, down nearly 6 percent so far this year. Against the Swiss franc, the greenback has fallen 1.6 percent so far in 2018.
The Japanese and Swiss currencies tend to appreciate in times of geopolitical and economic stress.
China on Wednesday proposed tariffs on U.S. imports including soybeans, planes, cars, beef and chemicals. The Chinese plan came hours after Washington unveiled a detailed breakdown of some 1,300 Chinese industrial, transport and medical goods that could be subject to 25 percent duties.
China’s move is “a sign that Beijing is up to the fight and that if U.S. President Donald Trump wants to prove that trade wars are in fact easy to win, he’ll have to back it up with actions,” said Craig Erlam, senior market analyst at OANDA in London...