Dollar strengthens

TOKYO: The dollar edged higher on Monday as confirmation was awaited that there will be talks this week between China and the United States, which markets hope will lead to an easing of their trade disputes.

The dollar index against a basket of six major currencies ticked up 0.11 percent as of 0512 GMT to 96.211 after shedding more than half a percent on Friday. Escalating trade tensions between the United States and its trading partners, in addition to a plunge in the Turkish lira, has taken a heavy toll on emerging market currencies.

These strains had pushed the dollar index to 96.984 on Aug. 15, its highest since June 2017.On Monday, the dollar index traded in a narrow range between 96.103 and 96.219, not far off 96.096 touched on Friday, its lowest level since Aug. 10. The dollar´s advance halted ahead of anticipated trade talks between Chinese and U.S. officials in Washington.

Media reports say the talks will take place in the next few days. Receding fears over the Turkish lira´s late plunge on Friday reduced risk aversion in the broader markets, lifting the euro. The U.S.-China negotiations "will not be between high level officials and are therefore unlikely to produce immediate results," said Yukio Ishizuki, senior currency strategist at Daiwa Securities.