Dollar weakens amid US-China trade talks
Economy News - Baghdad
The dollar fell against the yen on Thursday as uncertainty over when the United States and China signed a preliminary trade deal encouraged traders to relinquish some creditor positions.
Trade uncertainty also lifted the yen, which is considered a safe haven against the euro and the Australian dollar.
Sterling hit a one-week low ahead of the Bank of England's scheduled meeting later on Thursday. No change in policy is expected, but investors are focusing on how the bank will respond to the uncertainty surrounding Brexit.
The dollar was surprised on Wednesday after a senior administration official told Reuters the signing of the so-called first phase of a trade deal could be delayed until December.
The dollar fell 0.24 percent on Thursday to 108.73 yen.
The United States and China imposed tariffs on each other's goods in a 16-month-old trade war that spilled over into financial markets and slowed investment and global growth.
Investors hope an initial agreement between the United States and China will eliminate some tariffs, but negotiations between Washington and Beijing are difficult, making an agreement uncertain.
In domestic market trading, the yuan fell to $ 7.0163, extending its slide from a two-and-a-half month high of $ 6.9880 hit on Tuesday as optimism about a near-term settlement of trade disputes subsided.
The yen rose about 0.27 percent to 120.27 euros and gained 0.4 percent to 74.71 against the Australian dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six rival currencies, was steady at 97.985.
The pound traded at $ 1.2848, after briefly touching the lowest level since October 29. Against the euro, sterling traded at 86.11 pence, confined to a limited range.
The euro traded at $ 1.1061, little changed in the session after falling slightly by 0.07 percent on Wednesday.