After seven consecutive sessions in the red, the Dollar Index is up by 0.3% during early Thursday trading. The greenback, the safe haven of choice at the peak of the pandemic, had recently been depreciating as market sentiment improved. However, today investors are showing caution because of a new escalation in tensions between China and the US, with the American administration’s suspension of Chinese flights into the US from June 16th. The reigniting of tensions between the two economic superpowers would be very bad news for the growth prospects of a global economy already battered by the coronavirus fallout.
