Yahoo Finance Dollar Little Changed, Yuan Slips as U.S. Prepares Talks with China Next W
Investing.com - The U.S dollar was little changed on Friday, while the Chinese yuan slipped after posting its biggest daily gain since January 2017 in offshore trade on Thursday following news that China and the U.S. will resume trade talks later in August.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, slipped 0.1% to 96.47 by 1:30AM ET (05:30 GMT). The index climbed to 96.984, its highest since June 2017 on Wednesday when concerns over China’s economic health and Turkish’s lira crisis drove investors to the greenback and other safe-haven assets.
Meanwhile, a rebound by onshore Chinese yuan faded after the latest trade news helped the currency to pull back from a 19-month trough of 6.9340 against the dollar set mid-week. The USD/CNY pair last stood at 6.8884, up 0.7%.
News that Chinese and U.S. officials will begin trade talks later this month improved market sentiment, even as Larry Kudlow, Trump’s top economic aide, warned China that the U.S. is determined to get a good deal.
"With the much stronger than expected daily fixing in the past few days and improving sentiment on the U.S.-China trade talk, the market will be more cautious in chasing USD/CNY higher in the near term," strategists at OCBC Bank wrote.
The USD/TRY pair gained 0.06% 5.8663. The lira is now up almost 25% from its record low of 7.2400 hit early on Monday on reports that Qatar has promised to invest $15 billion in Turkey.
However, there are still concerns over Turkish President Tayyip Erdogan's policies to combat the country's double-digit inflation and his row with Washington over detained American pastor Andrew Brunson.
Elsewhere, the USD/JPY pair slipped 0.03% to 110.89 , on track to end the week virtually flat.
The Aussie dollar was up 0.1% against its U.S. counterpart at 0.7268 after Reserve Bank of Australia Governor Philip Lowe said interest rates would stay at record lows "for a while yet".
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