The dollar rose in early Asian trade on Monday after weekend talks between the United States and China eased fears of a trade war between the world's two largest economies while global hot spots appeared to cool.
The dollar, government bonds and equities have been battered since massive tariffs announced by US President Donald Trump last month shook confidence in American assets. After talks in Geneva, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said Sunday a deal had been reached with China to cut the US trade deficit.
More details are expected on Monday. Attention will also be on US earnings and data this week, including the consumer price index (CPI) figure on Tuesday, for indications of how much damage the trade war has done to the economy. "Early signs from the interbank FX trade support USD longs, certainly against CHF, JPY and EUR, and we head into US core CPI and retail sales with USD support," Chris Weston, head of research at Pepperstone, said in a note.
"We head into US core CPI and retail sales with USD support," he added.
India and Pakistan declared a ceasefire over the weekend after four days of fighting between the nuclear-armed powers that rattled markets. And Ukrainian President Volodymyr Zelenskiy said he was ready to meet Russian leader Vladimir Putin in Turkey on Thursday for direct talks, their first since the early months of the 2022 invasion.
The dollar index rose 0.2% in early Asian trade, still down 3.6% from Trump's April 2 "Liberation Day" tariff announcement.
The U.S. currency rose 0.3% to 145.85 yen. The New Zealand dollar, a common proxy for risk assets, rose 0.2% to $0.5921. The euro was at $1.1226, down 0.20% so far in Asia. The Australian dollar was at $0.6424, up 0.19% in early trade. (Newsmaker23)
Source: Reuters
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