U.S. Dollar Steadies Amid Anticipation of U.S.-China Trade Talks

The U.S. dollar maintained its position on Monday following losses from the previous week, as financial markets brace for Tuesday's critical U.S. Consumer Price Index report for July and concentrate on the trade discussions between Washington and Beijing. These talks aim to avert increased tariffs.

The dollar index recorded no change, staying at 98.25 after a 0.4% decline last week. In a holiday-quietened Japanese market, the dollar was steady at 147.685 yen. The looming trade deadline of August 12, set by the Trump administration, keeps the spotlight on policy evolution regarding semiconductors.

Chris Weston of Pepperstone Group Ltd anticipates an extension, suggesting a 90-day truce. The Financial Times highlighted an arrangement where Nvidia and AMD would contribute 15% of their Chinese sales revenue to the U.S. government to secure semiconductor export licenses. This comes amid concerns about Nvidia's H20 chips' security risks voiced on a state-affiliated Chinese social media.