The dollar rose against other major currencies on Thursday as investors focused on the latest developments in a 16 month trade dispute between China and the US.
Risk sentiment fluctuated Thursday as mixed signals emerged as to whether the US and China can reach at least some agreements to end trade tensions between the two world's largest economies.
In recent weeks, investors have become more and more optimistic about the possibility of reaching an agreement, but in recent days, the trade war rhetoric on both sides has been getting tough, making investors uneasy.
President trump said on Tuesday that the United States will raise tariffs on Chinese imports if it fails to reach an agreement with Beijing to end the trade war.
On Thursday, a report in the South China Morning Post said the United States may delay the imposition of tariffs on Chinese exports, including electronic products and Christmas decorations, even if no agreement has been reached by December 15, the date of tariff enforcement.
In addition, Liu He, China's vice premier and chief trade negotiator, said he was "cautiously optimistic" about the first phase of the agreement, Bloomberg reported.
Alfonso Esparza, senior foreign exchange analyst at OANDA in Toronto, said: "the impact of these news is mutually offset, which is actually bad for the market."
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