Investing.com – The u.s. dollar recovered some of its earlier losses on Tuesday, while the United States and China closed a two-day meeting.
Officials from the two countries are currently completing negotiations in Beijing. Traders are waiting to be informed of the progress of the negotiations.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.13% to 95,35 to 04: 40 (09.40 am GMT). The dollar was stronger than the yen, with USD / JPY up 0.13% at 108.84.
The dollar plunged on Friday after the federal Reserve chairman, Jerome Powell, has stated that the Fed would act “quickly” if the market’s concerns went beyond the economic data, strong.
His comments have helped to convince investors that the Fed will raise its interest rates this year, as world growth slows.
“The Fed listens to the market and had recognized the warning signs of the market,” said Sim Moh Siong, a strategist in the field of exchange at the Bank of Singapore.
“Inflation in the u.s. has fared well so far, and the Fed therefore has the possibility of making a pause in its cycle of interest rate increases”, he added.
The us president, Donald Trump is also expected to give a speech to the nation Tuesday evening on the wall of the borders, and the deadlock in the government’s budget.
At the same time, the euro is slightly lower, with EUR / USD down 0.16% to 1,1458 due to the appreciation of the dollar. The pound sterling has not moved while the Brexit was still under pressure, with the GBP / USD to 1,2774.
The AUD / USD has lost 0,16% to 0,7136 while the NZD / USD was down 0.11% to 0,6742 and the USD / CAD has lost 0.21 per cent to 1,3266.
-Reuters contributed to this report.