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U.S. Dollar Down Slightly as Trade in Focus

Investing.com - The U.S. dollar was slightly lower on Tuesday, while the safe-haven yen pulled back from earlier highs as traders paused to evaluate the possibility of the U.S. and China restarting trade talks.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.1% to 97.917 as of 11:04 AM ET (15:04 GMT).

Signals from both sides were mixed, as U.S. President Donald Trump claimed that China had called to ask to restart negotiations. Beijing has failed to confirm the calls, casting doubt on Trump's assertion. Still, both countries seem willing to think about resolving their differences.

Tensions escalated on Friday after both the U.S. and China announced new tariff measures and Trump appeared to threaten to use emergency powers to force U.S. companies to stop making goods in China.

The Japanese yen, which is seen as a safe-haven in times of market turmoil, rose with USD/JPY falling 0.2% to 105.94. China’s onshore yuan was still at a fresh 11-and-a-half year low, as traders worried the economy could slow down due to trade disputes.

Elsewhere, EUR/USD was flat at 1.1101. GBP/USD rose 0.5% to 0.2269 after falling 0.5% on Monday amid concerns on whether British Prime Minister Boris Johnson has made any progress in convincing the European Union to renegotiate the Brexit agreement.

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