Dollar rises amid optimism over US-China trade relations

The dollar rose in early Asian trading on Monday after weekend talks between the US and China eased fears of escalating trade tensions between the world’s two largest economies, according to Reuters.

After negotiations with Chinese officials, US Treasury Secretary Scott Bessent and Trade Representative Jamison Greer announced an agreement aimed at reducing the US trade deficit.

Investors are also closely watching the upcoming US inflation report due Tuesday. Reuters suggests these data could shed light on how the trade war is affecting the American economy and potentially reshape expectations about the Fed's next rate decision.

Meanwhile, Michael McCarthy, head of investment platform Moomoo, dismisses the talk of the dollar losing its reserve currency status as premature, arguing that markets will return to their usual patterns once trade relations stabilize.