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Dollar Loses Ground Against Safe Haven Yen, Swiss Franc

The U.S. dollar lost ground against the Japanese yen and Swiss franc with traders opting for safe haven currencies amid mounting worries about an escalation in U.S.-China trade tensions.

The dollar index, which weakened to 97.24, recovered some lost ground subsequently, but was still down in negative territory around 97.40, losing more than 0.2%.

Against the euro, the dollar was down 0.04% at $1.1220 and against British Pound Sterling, it was down 0.07% at $1.3016.

The Japanese yen rose to a more than 3-month high against the greenback, moving to 109.80 and the Swiss franc hit a one-month high against the dollar, rising to 1.013 francs a dollar.

The Canadian loonie gained marginally against the greenback, with the dollar/loonie trading at 1.3470.

The Chinese currency yuan tumbled to a four-month low as trade worries mounted, but rebounded to regain some lost ground after U.S. President Donald Trump said he is likely to talk to Chinese President sometime in the near future.

Trump claimed during a rally in Florida on Wednesday that the U.S. is planning to raise tariffs on Chinese goods because China "broke the deal."

"So they're flying in, the vice premier tomorrow is flying in — good man — but they broke the deal," Trump told his supporters. "They can't do that, so they'll be paying."

The comments from Trump come as Chinese Vice Premier Liu He is set to take part in the latest round of trade talks as officials from the world's two largest economies attempt to reach an historic trade agreement.

Trump told reporters at the White House today that a trade deal with China is still possible.

Trump indicated he has set a midnight deadline to reach a trade agreement, calling raising tariffs an "excellent" alternative.

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