Dollar Hits Highest Since August as Trade Tensions Favor Havens

The dollar advanced against most major peers after fresh trade frictions with China rattled risk assets and sent investors looking for havens.

The Bloomberg Dollar Spot Index rose 0.3% to its strongest since Aug. 1, rallying along with government bonds as stocks fell. Currency losses were led by the Australian dollar, dropping 1% to its weakest in nearly two months, while the pound hit a fresh two-month low following UK labor data.