Dollar continues recovery amid renewed US-China tensions

The US dollar rose on Friday, to continue its recovery for the second straight day from a two-week low, on investors' risk-aversion and demand for the US currency as the best alternative investments, amid the escalation of the US-China tensions over Hong Kong.

The dollar index rose 0.45% to 99.87 points, after opening at 99.82, and hit an intraday low of 99.39.

The greenback gained 0.3% yesterday, its second daily, first gain in four days, within recovery attempts from the 2-week low of 99.00 points.

A Chinese official said that the Chinese government plans for a new national security law in Hong Kong, which led US President Donald Trump to say that the US would respond "very strongly".

These developments in the US-China relations drove investors to focus on safe haven assets, led by the US dollar, which has been recently receiving safe-haven demand after the closure of the global economy due to the coronavirus pandemic.