Dollar Steady Amid High-Stakes U.S.-China Trade Talks

The U.S. dollar remained steady as the U.S. and China continued tense trade talks, leaving investors cautious. Key officials discussed tariffs and restrictions. Currency markets showed little movement, while the upcoming U.S. inflation report and Federal Reserve meeting kept investors watchful amid ongoing economic strains.

The U.S. dollar stood firm on Tuesday as trade negotiations between the United States and China intensified, causing investor unease. The discussions, aimed at resolving a conflict widening from tariffs to rare earth restrictions, stretched into a second day in London.

Despite positive feedback from some U.S. officials, a lack of detailed outcomes kept currency markets tepid, with the U.S. dollar showing minimal change against the yen and euro. Key issues such as chip export controls and student visas remain unresolved, unlike previous talks in Geneva that yielded quick tariff relief.

The focus shifts to the consumer price index report this week, which precedes the Federal Reserve's mid-June meeting. Investors remain alert as this data will gauge the trade tensions' impact on inflation, influencing interest rate decisions amidst expectations of potential cuts later in the year.

(With inputs from agencies.)