Dollar rises broadly today as trade spat between US and China heated up again. It’s started yesterday when Trump’s economic advisor Larry Kudlow blamed Chinese President Xi Jinping for for holding back the trade deal with the US. The timing of such accusation is a bit odd, sounding like it’s out of nothing. Nevertheless, it doesn’t occupy a lot of air time except that such comments triggered some nerves of Chinese government officials. For the Americans, their focuses seem to be staying on Trump’s summit with Putin.
Anyway, Chinese Foreign Ministry Hua Chunying said in a regular press briefing today that Kudlow “unexpectedly distorted the facts and made bogus accusations is shocking and beyond imagination.” And, “the United States’ flip-flopping and promise-breaking is recognized globally.” And, “in the face of people all over the world, it is shocking that the relevant US officials have turned black and white and reversed it.”
She added that “the US behavior can only seriously damage its own reputation once again, and it is completely unhelpful to solve the problem.” Hua also reiterated China’s position that “do not want to fight, not afraid to fight.”
Trade war has so far been supporting Dollar. And it seems like, the more noise, the more strength for the greenback.
