By Rocky Swift
TOKYO (Reuters) -The dollar climbed in early Asian trade on Monday after weekend talks between the United States and China eased concerns of a trade war between the world’s two biggest economies while global hot spots appeared to cool.
The greenback, Treasuries and equities have taken a beating since sweeping tariffs announced by U.S. President Donald Trump last month shook confidence in American assets. After talks in Geneva, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer on Sunday said a deal had been reached with China to cut the U.S. trade deficit.
Further details are expected on Monday. Eyes will also be on U.S. earnings and data this week, including consumer price index (CPI) figures on Tuesday, for indications of how much damage the trade spat has done to the economy.
“Early signs from interbank FX trade favour USD longs, certainly vs CHF, JPY and EUR, and we head into US core CPI and retail sales with the wind at the back of the USD,” Chris Weston, head of research at Pepperstone, said in a note.
“We head into U.S. core CPI and retail sales with the wind at the back of the USD,” he added.
India and Pakistan announced a ceasefire over the weekend following the four days of fighting between the nuclear powers that had rattled markets. And Ukrainian President Volodymyr Zelenskiy said he was ready to meet Russian leader Vladimir Putin in Turkey on Thursday for direct talks, the first since early months of the 2022 invasion.
The dollar index rose 0.2% in early trade in Asia, still down 3.6% from the April 2 announcement of Trump’s “Liberation Day” tariffs.
The U.S. currency climbed 0.3% to 145.85 yen. New Zealand’s kiwi dollar, a common proxy for risk assets, advanced 0.2% to $0.5921.
The euro stood at $1.1226, down 0.20% so far in Asia. The Australian dollar fetched $0.6424, up 0.19% in early trade.
(Reporting by Rocky Swift; Editing by Stephen Coates)
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