2 months ago
Forex

Dollar Gains as U.S-China Wrap Up Trade Meeting

Investing.com - The U.S. dollar recovered some of its prior losses on Tuesday as U.S. and China wrap up

Investing.com - The U.S. dollar recovered some of its prior losses on Tuesday as U.S. and China wrap up a two-day trade meeting.

Officials from the two countries are wrapping up talks in Beijing, with traders waiting for any news that the two have made progress on reaching an agreement.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.13% to 95.35 as of 4:40 AM ET (9:40 GMT). The dollar was higher against the yen, with USD/JPY rising 0.13% to 108.84.

The dollar had dipped Friday after Federal Reserve Chairman Jerome Powell said the Fed would act “quickly” if market concerns outweigh the strong economic data.

His comments helped convince investors that the Fed will not raise interest rates this year as global growth slows down.

"The Fed is listening to the market and has acknowledged flashing market signs," said Sim Moh Siong, currency strategist at Bank of Singapore.

"U.S. inflation has been well behaved so far and so the Fed does have room to pause on its rate hike cycle," he added.

U.S. President Donald Trump is also expected to give an address to the nation on Tuesday night over the border wall and the government budget impasse.

Meanwhile, the euro slightly lower, with EUR/USD down 0.16% to 1.1458 due to the higher dollar. Sterling was flat amid continued Brexit pressure, with GBP/USD at 1.2774.

AUD/USD fell 0.16% to 0.7136 while NZD/USD slipped 0.11% to 0.6742 and USD/CAD lost 0.21% to 1.3266.

-Reuters contributed to this report.