The dollar fell against the yen and the euro on Monday after a media report dashed new hopes for a trade deal between the US and China.
CNBC reports that China is pessimistic about a trade deal with the United States, as president trump is reluctant to lift the tariffs.
Earlier, Liu He, vice premier of the State Council and China's leader of the comprehensive economic dialogue between China and the United States, spoke with us trade representative Laith Heze and finance minister manuchin, Xinhua said on Sunday. The two sides held constructive discussions on their respective core concerns of the first phase agreement and will continue to maintain close exchanges.
"I think the market overreacted to this news," said Mazen Issa, senior foreign exchange strategist at dominion securities in New York. "There is no substantive information about whether this agreement has been reached, just as there are similar ups and downs every day."
Investors are looking for signs that tariffs on their goods will be lifted, as they are seen to hurt global economic growth.
Another round of US tariffs on Chinese goods is scheduled to take effect on December 15.
After the CNBC report, the yen rose sharply to 108.64 yen from 109.02 yen to the dollar. Final offer is 108.60.
Euro EUR = also rose after the Fed said trump and fed chairman Powell met in the White House on Monday morning.
"We discussed a wide range of issues, including interest rates, negative interest rates, low inflation, easing policies, the strength of the dollar and its impact on manufacturing, trade with China, the European Union and other countries," trump wrote in a subsequent tweet, describing the atmosphere as "good and cordial.".
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