Dollar weakens

TOKYO: The U.S. dollar edged lower against a basket of currencies on Wednesday as its recent rally on global trade tensions showed signs of fading, while the offshore yuan steadied near a one-week high.

In a reminder of the growing trade disputes, the U.S. Trade Representative´s office said late on Tuesday that the United States would begin collecting 25 percent tariffs on another $16 billion of goods it imports from China later this month.

The move is the latest by Washington to pressure China into negotiating trade concessions after it imposed tariffs on $34 billion of goods in July.

China has vowed to retaliate to an equal degree.

On Wednesday, the dollar fell 0.15 percent against a basket of six currencies and was at 95.065 at 0330 GMT.

It fell as low as 94.994 overnight. "Market reaction to the headlines about the U.S.-China trade war is waning," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

"If there are clear signs of a slowdown of the U.S. economy due to the tariffs imposed in July, then I think the market will begin to price in slower rate hikes or no rate hikes by the Federal Reserve.