Investing.com - The dollar pushed higher against a basket of the other major currencies on Wednesday as trade tensions remained elevated following reports that China will soon announce a list of retaliatory tariffs on U.S. imports.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.16% to 89.10 by 02:59 AM ET (06:59 GMT), extending its recovery from Tuesday’s five-week low of 88.53.

Fears over the prospect of trade war between the U.S. and China mounted after the state run Chinese newspaper the Global Times reported Wednesday that Beijing will soon announce a list of tariffs on U.S. exports to China in response to proposed U.S. tariffs on Chinese imports.

Reports that U.S. President Donald Trump discussed China’s trade practices with German Chancellor Angela Merkel and French President Emmanuel Macron also dented hopes that the risk of a trade war was easing.

Investors’ fears that trade tensions between the world’s two largest economies could escalate out of control and deal a blow to the global economy.

The dollar was higher against the yen, with USD/JPY rising 0.3% to 105.65.

The euro edged lower against the greenback, with EUR/USD dipping 0.09% to 1.2391.

The euro retreated from five-week highs against the dollar on Tuesday after soft euro zone economic data and dovish-sounding comments by Erkki Liikanen, a member of European Central Bank's governing council.

The pound pushed higher, with GBP/USD rising 0.13% to 1.4175.

Investors were looking ahead to a final revision of U.S. fourth quarter growth and data on pending home sales later in the day.