Dollar steady as Trump softens tariff stance; Xi meeting confirmed for October.
Dollar firm; euro below 1.16,NZD hits six−month low at 0.57145.
Bitcoin fell 0.36% to 115,380; 19B liquidated amid crypto market turmoil.
U.S.-China Trade Tensions Show Signs of Easing
The U.S. dollar remained steady on Tuesday following a shift in President Donald Trump’s harsh stance on tariffs against China. Market optimism increased as Trump hinted at the possibility of a meeting with Chinese President Xi Jinping, fueling hopes for a de-escalation in the ongoing trade dispute.
After a turbulent session the previous Friday—when Trump unexpectedly announced a 100% tariff hike on Chinese exports—the president’s more conciliatory tone over the weekend helped calm currency markets.
Additionally, U.S. Treasury Secretary Scott Bessent confirmed that Trump is still scheduled to meet Xi in South Korea later this month, further bolstering confidence.
Currency Movements Amid Global Economic Concerns
In currency trading, the dollar held firm, which pressured the euro to remain below the $1.16 mark, trading around $1.1566. The British pound slightly dropped by 0.06% to $1.3328, while the New Zealand dollar fell to a six−month low of $0.57145.
According to Homin Lee, senior macro strategist at Lombard Odier, both the U.S. and China appear keen to avoid an uncontrolled escalation, recognizing each other's strategic leverage.
The dollar index experienced a marginal increase of 0.04%, reaching 99.34. Meanwhile, the Australian dollar stayed steady at $0.6516, and the Japanese yen weakened by approximately 0.2%, trading at 152.57 per dollar, affected by political uncertainty in Japan following a coalition partner's withdrawal from the ruling party.
Cryptocurrency Market Faces Sharp Declines After Volatility
Cryptocurrency values continued to suffer as bitcoin dropped 0.36% to $115,380.19 after a severe decline exceeding 6%. Ether dropped 0.77% to $4,256.42, following an almost 8% loss last week.
The sector experienced significant turbulence, with over $19 billion liquidated last Friday in leveraged positions amid panic selling and low liquidity, causing pronounced price swings. Investors remain cautious as market instability persists in the crypto space.
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