Hot Now

Dollar dips

Ag Reuters

TOKYO: The dollar stepped back from 13-1/2-month highs against other major currencies on Friday as talks next week between China and the United States offered some hope that the world´s two largest economies will find a way to head off a full-blown trade war.

The dollar index, a measure of the greenback´s strength against a basket of six major peers, was 0.1 percent lower at 96.549.It had climbed to 96.984, its highest since late June 2017 on Wednesday during a week in which a plunge by the Turkish lira and concerns over China´s economic health hit emerging market currencies, driving up demand for the safe-haven greenback.

The dollar lost steam, however, after China and the United States agreed on Thursday to hold a new round of trade talks on Aug. 21-22, helping stem risk aversion in the broader markets.

The euro, which had also been hit by fears of a spillover from Turkey´s financial crisis, was among the currencies to benefit from the news of trade talks. The euro was a shade firmer at $1.1380, after gaining 0.3 percent overnight.

The single currency was down 0.25 percent this week, having brushed a 13-month low of $1.1301 in the wake of concerns that the Turkish crisis could hurt European banks.