Dollar rises 0.3% on majors, lifted by U.S.-China conflict

The dollar gained on Friday as the U.S.-China conflict boosted market appetite for safe-haven currencies.

The dollar index rose 0.3% to 99.7.

U.S. President Donald Trump warned of a strong reaction if Beijing pursues its planned security legislation in Hong Kong. U.S.-China tensions intensified during the pandemic after Trump criticized China’s handling of the virus outbreak.

Last week, Washington blocked global chip supplies to Huawei Technologies. The Senate also passed a legislation that could block Chinese companies from listing their shares on U.S. exchanges.

The Chinese yuan stood at 7.151, hitting more than a two-week low in offshore trade.

The euro lost 0.3% to 1.092 on the dollar and the Japanese yen grew 0.2% to $107.36.

Commodity currencies dropped as investors turned to safety, with the Australian dollar down 0.7% and the New Zealand dollar down 0.3% on the dollar.

The Norwegian krone was down 1% against both the dollar and the euro.