The U.S dollar was little changed on Friday, while the Chinese yuan slipped after posting its biggest daily gain since January 2017 in offshore trade on Thursday following news that China and the U.S. will resume trade talks later in August.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, slipped 0.1% to 96.47 by 1:30AM ET (05:30 GMT). The index climbed to 96.984, its highest since June 2017 on Wednesday when concerns over China’s economic health and Turkish’s lira crisis drove investors to the greenback and other safe-haven assets.
Meanwhile, a rebound by onshore Chinese yuan faded after the latest trade news helped the currency to pull back from a 19-month trough of 6.9340 against the dollar set mid-week. The USD/CNY pair last stood at 6.8884, up 0.7%.
News that Chinese and U.S. officials will begin trade talks later this month improved market sentiment, even as Larry Kudlow, Trump’s top economic aide, warned China that the U.S. is determined to get a good deal.
