/2020/06/12/192625140p.jpg)
The dollar stood at 107.18 yen on Tuesday in Asia following a 0.4% gain in the previous session. The dollar traded at 0.9422 Swiss franc after eking out three consecutive sessions of narrow gains.
The euro was quoted at US$ 1.1344, resting below a one-month high reached on Monday. The common currency traded at 90.40 pence, holding onto a 0.9% gain from the previous session.
The United States and China are waging diplomatic battles on several fronts that have the potential to unsettle financial markets.
Read Also: Dollar starts week on back foot ahead of data, earnings
U.S. President Donald Trump's administration plans to soon scrap a 2013 agreement between U.S. and Chinese auditing authorities, a senior State Department official told Reuters.
This could foreshadow a broader crackdown on Chinese firms listed on U.S. stock markets that are under fire for sidestepping U.S. disclosure rules.
In addition, the United States has hardened its stance against China's claims in the South China Sea and is taking steps to end Hong Kong's special legal status in protest against Beijing's security law for the former British colony.
The onshore yuan fell 0.2% to 7.0109 per dollar as worries about the Sino-U.S. relationship slowed the Chinese currency's recent rally.
Investors are likely to avoid big positions before the release of China's dollar-denominated trade data later today.
Data due later this week on Chinese gross domestic product (GDP), retail sales and industrial output, which are expected to show the world's second-largest economy staged a V-shaped recovery in the second quarter.
The Singapore dollar and other Asian currencies fell after data showed Singapore's GDP collapsed by a record 41.2% in the second quarter, highlighting the carnage that the pandemic can inflict on small, trade-reliant economies.
Read Also: WHO reports record daily increase in global coronavirus cases, up over 230,000
Demand for riskier assets is likely to take a hit after California, the most populous U.S. state, placed new restrictions on businesses as coronavirus cases and hospitalizations soared.
The Australian dollar was little changed at US$ 0.6936. Sentiment for the Aussie has taken a hit as some Australian states have also re-imposed coronavirus restrictions.
The New Zealand dollar fell slightly to US$ 0.6530.
The Antipodean currencies are considered barometers of risk because of their close ties to commodities and China's economy.
