After the Monday strengthening, the US dollar has somewhat trimmed gains the next day.
The US Dollar Index decreased from 95.44 to 95.17. The rate was very close to the peak of 95.96 recorded in late July but then weakened.
According to the market, the US-China trade conflict can support the greenback as Washington may reduce the US trade balance deficit making use of the imposed restrictions. The market expert believes that the tariffs are full of uncertainties since it is unknown to what extent they will be realized.
At the same time, the Australian dollar reversed and rebounded against the American counterpart reaching 0.7425, following the reports that the Reserve Bank of Australia left the interest rate at 1.50%. According to the regulator, this decision is explained that low rate supports the economic upturn in the country. In addition, the Bank expects an inflation hike in 2019 and 2020.
As for the US dollar-to-yuan, the rate dipped to some 6.8320. The PBOC set the reference rate for the yuan at 6.8431 (6.8519 yesterday).
The Japanese currency also improved against the US dollar. The greenback decreased to 111.34. Notably, the Washington and Tokyo are said to hold bilateral talks on trade issues in Washington.