Dollar index retreats below 108 mark

The US dollar index retreated further under 108 mark and is quoting at 107.82 during Asian hours on Wednesday tracking lower US treasury yields amid ongoing trade war between the United States (US) and China. US benchmark 10-year yields are trading near 4.5%. Although US President Donald Trump delayed tariffs on Mexico and Canada, duties of 10% on Chinese goods kicked in, sparking retaliatory actions by China. China reportedly applied tariffs on specific products, such as coal, Liquefied Natural Gas (LNG), Crude Oil, farm equipment and electric trucks imported from the US. Additionally, it has decided to impose controls on exports of some metals, which are critical for electronics. Meanwhile, US JOLTS Job Openings for December faced a bigger decrease to 7.6 million openings, from the 8 million expected, down from 8.098 million in November. Investors now brace for Fridays US Nonfarm Payrolls (NFP) data, which is expected to throw some light on the Federal Reserves monetary policy direction.

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