Dollar Holds Steady Amid U.S.-China Trade Talk Progress

The dollar steadied as U.S. and China concluded trade talks indicating a thaw in the trade war, while the sterling was firm ahead of a UK spending review. Despite no new improvements, a framework was approved resolving China's export restrictions. Investors anticipate a U.S. consumer inflation report impacting Federal Reserve policy.

The dollar maintained its position on Wednesday as trade discussions between the U.S. and China came to a close in London. Although these talks hinted at progress, details were limited. Meanwhile, the British pound remained stable as anticipation built for an upcoming UK government spending review.

U.S. and Chinese officials have agreed upon a framework based on last month's trade truce in Geneva. This agreement aims to address China's export restrictions on rare earth minerals and some recent U.S. export restrictions, according to Chinese Vice Commerce Minister Li Chenggang.

The dollar's performance has faced challenges, reflected by an 8% decline this year amidst unpredictable U.S. policies. As analysts await a crucial U.S. consumer inflation report that could influence the Federal Reserve's upcoming monetary policy decisions, concerns persist in financial markets.

(With inputs from agencies.)