The u.s. dollar was higher against the japanese yen Tuesday, while the United States and China hoped to get closer to a preliminary agreement aimed at resolving their long-standing trade war, which led to fears of a global economic slowdown.
The dollar rose 0.27% against the yen, to 108,86 at 11.20, based on gains of 0.4% recorded on Monday.
In recent days, Beijing and Washington have given encouraging signs of progress in the trade negotiations.
According to Reuters, China is pushing the u.s. president Donald Trump to remove more customs duties imposed in September, in the framework of a commercial agreement of “phase 1” which should be signed later this month in a place yet to be determined.
The two countries have raised tariffs on their respective products in a trade war that lasts for 16 months.
“Some espérent that the United States could defer tariff remaining, which should enter into force on the 15 December. But if they go further by lowering the existing rates, this would benefit not only the economy, but also to the truce that would seem to be more permanent,” said Yukino Yamada, senior strategist at Daiwa Securities.
The dollar index against a basket of six major currencies remained stable at 97,32, is now just below the top of a week of 97,47 reached during the night.
The euro was unchanged against the greenback 1,1126, while the british pound rose slightly to 1,2898.
The australian dollar was also rising 0.57% to 0,6923, investors are now more comfortable with risk-taking.
Earlier on Tuesday, the Reserve Bank of Australia left its key rate at a record low of 0.75% and reiterated its concern about consumer spending. She said that the rate would probably be low for a long period of time.
Many economists expect that the RBA will reduce rates at least once at the beginning of next year to boost inflation and the economy.
–Reuters contributed to this report
