Dollar gains

TOKYO: The dollar largely held onto gains on Wednesday as the lingering threat of a major escalation in the trade conflict between the United States and China weighed on risk sentiment.

Fears of a hit to global growth from U.S. President Donald Trump´s ´America First´ protectionist policies have kept markets in a state of heightened anxiety for much of this year.

Trump could follow through on plans to impose levies on $200 billion more of Chinese imports after a public comment period on the new tariffs is set to end on Thursday, though it is unclear how quickly that will happen.

The dollar index, which measures the greenback against a basket of six currencies, was steady at 95.403 after hitting a two-week high of 95.737 during the previous session.

"Trump does what he says he´ll do in one form or another, so I expect tariffs will be implemented," said Ayako Sera, market economist at Sumitomo Mitsui Trust Bank.

"The consensus is that Trump will take some kind of action because everyone believes that he does what he says he´ll do. Markets will be surprised if he doesn´t do anything," she said.