Trade Talks Resonate: U.S. Dollar Steady Amid Global Tensions

The U.S. dollar showed resilience on Tuesday as trade talks between Beijing and Washington continued, sparking anticipation among investors for a potential easing of trade tensions. These critical discussions in London address complex issues beyond tariffs, such as chip export controls and rare earth supplies.

While the dollar remained steady, other currencies reacted to varying economic indicators. Sterling dipped following weaker-than-expected UK jobs data, posing questions about future interest rate cuts from the Bank of England. Meanwhile, Japan signals the possibility of delaying interest rate hikes, reflecting the impact of global trade tensions.

Investor attention now turns to the upcoming U.S. consumer price index report, anticipated to reveal further insights into the economic impact of ongoing tariffs. The Federal Reserve's upcoming policy meeting will also be scrutinized, with expectations for rate cuts as the year progresses.

(With inputs from agencies.)