Dollar index climbs to around one-month high amid US-China trade talks

The dollar index is seen rallying near a one-month high amid easing tensions after China and the United States announced a 90-day pause in their trade war. Both countries agreed to temporarily slash tariffs with the US lowering duties on Chinese goods to 30% from 145% and China reducing tariffs on US goods to 10% from 125%. Meanwhile, President Trump hinted at further talks with Chinas President Xi Jinping later this week, restoring optimism. The benchmark US 10-year Treasury yield soared to 4.46%, widening the rate differential and supporting the USD. The dollar index that measures the greenback against a basket of currencies is quoting at 101.35, down 0.25% on the day. Going ahead this week, US consumer price index (CPI), retail sales and Fed Chair Jerome Powells speech is expected to provide further clues on the central banks policy path.

 

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