US dollar stabilizes amid ongoing trade talks

Reuters reports that the US dollar has steadied following its sharpest decline in over three weeks as global trade tensions are cooling down. 

The outlook for US commerce with other countries has improved after an agreement with the UK last week and talks with China that resulted in the tariff pause, the news agency says. Additionally, earlier in April, President Donald Trump announced potential deals with India, South Korea, and Japan. 

The dollar index, which measures the currency against six major peers, was little changed at around 100.9 after falling 0.8% on Tuesday, Reuters reports.  

Analysts at Commonwealth Bank of Australia expect the index to rise 2–3% in the coming weeks as markets reassess the prospects for US and global economies following the Sino-US trade deal. However, the experts do not anticipate a full recovery of the US currency to the levels seen early this year, when the dollar index was at around 108.5. Analysts believe the US administration’s erratic trade policies might have permanently damaged the dollar’s status as a safe-haven currency.