Global Market Eyes on Central Bank Decisions Amid Trade Talks

The dollar weakened as investors anticipate central bank meetings, including a likely U.S. rate cut. The yen strengthened amid expectations from the Bank of Japan. Trade talks between Trump and China, along with meetings with Japanese leaders, are pivotal in influencing market sentiments this week.

The dollar took a downturn on Tuesday as investors awaited key central bank meetings, anticipating a rate cut in the U.S., while keeping a cautious watch on President Donald Trump's Asia tour and potential trade negotiations with China.

In a meeting between U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Satsuki Katayama, calls for prudent monetary policy bolstered the yen, already expected to be reinforced during the upcoming Bank of Japan session.

Market optimism surged as trade discussions appeared to ease tensions between the U.S. and China, although apprehensions linger regarding the substantiality of any forthcoming agreements.

(With inputs from agencies.)