Yen climbs, dollar falls ahead of Trump’s response to Beijing

The Japanese yen climbed against major currencies on Friday as investors rushed to safe havens. This came ahead of U.S. President Donald Trump’s press conference on China’s push for the security law in Hong Kong.

The dollar fell on the euro and the pound as it heads to a weekly loss against majors. However, the dollar’s course could reverse once the U.S.-China tensions worsen.

The markets await Trump’s response to China’s passage of the national security legislation in Hong Kong, which could trigger a diplomatic row between the world’s two biggest economies.

The yen climbed 0.5% to 107.09 on the dollar. It also rose against the euro and commodity currencies Australian and New Zealand dollars.

The dollar dropped to 1.1102 on the euro and stood at 0.9627 against the Swiss franc.

The Aussie traded at $0.6656, while the kiwi stood at $0.6214. The pound gained 0.27% to 1.2350 on the dollar.

On Thursday, the Chinese parliament approved the national security law for Hong Kong, while Western countries feared for the city’s autonomy and freedom.

President Trump said that he would hold a press conference on Friday after vowing to sanction Beijing for its actions.

Hong Kong could lose its special privileges under U.S. law and its status as a global financial hub once it loses its autonomy from China.

The escalating U.S.-China tensions worried investors as it could restore last year’s trade war between the two countries.

The yuan steadied at 7.1463 on the dollar. In offshore trade, the Chinese currency stood at 7.1641.