Dollar weakens as hopes for a preliminary trade deal between the United States and China recede
Economy News _ Baghdad
The dollar suffered losses as demand for the US currency was hit by diminishing hopes of a preliminary trade deal between the United States and China.
The yuan has also struggled, touching a two-week low against the US currency amid doubts over efforts to end the US-China trade war.
The Australian dollar weakened after the minutes of the Reserve Bank of Australia's monetary policy meeting showed that central bank officials were considering a rate cut this month.
There were high expectations that the United States and China would sign the so-called "phase one" deal this month to reduce the escalation in their 16-month trade war.
But the dollar took a hit on Monday after CNBC said China was pessimistic about agreeing a deal, suggesting a compromise on the world's biggest potential threat to the global economy remained elusive.
The dollar fell slightly to 108.62 yen after falling 0.09 percent on Monday.
Against the pound, the dollar held steady at $ 1.2956, near a one-month low. Sterling was supported by opinion polls suggesting the ruling Conservative Party would win in the next election.
The dollar index, which tracks the performance of the greenback versus a basket of six rival currencies, was not at 97.808 near a two-week low.
In domestic market trading, the yuan fell to a two-week low of 7.0295 per dollar.
Washington and Beijing have imposed tariffs on each other's goods in a bitter dispute over Chinese trade practices, which the US government says are unfair.
On the other hand, the Australian dollar fell 0.16 percent to 0.6799 US dollars and fell 0.26 percent to 73.82 yen.
The minutes of the Bank's meeting, released on Tuesday, showed that the Reserve Bank of Australia agreed that a further 0.75 percent rate cut could be justified at its November meeting given unwelcome weakness in wage growth and inflation.