Dollar Surge Amidst Trade Talk Hopes with China

The dollar rose on news that China may exempt some U.S. goods from tariffs, fueling hopes of easing trade tensions between the U.S. and China. Meanwhile, President Trump hinted at a de-escalation with China, contrasting earlier statements. The dollar index saw gains, reversing a four-week losing streak.

On Friday, the dollar experienced a notable rebound, reversing its previous losses after reports emerged that China is contemplating tariff exemptions for certain U.S. goods. This development sparked optimism about a potential de-escalation in the ongoing trade tensions between the United States and China.

Earlier in the week, President Donald Trump's comments about ongoing direct talks with China, subsequently denied by Beijing, added to the uncertainty among traders. The fluctuating news had a significant impact on the currency markets, prompting investors to react swiftly to emerging headlines.

Gains in the dollar were marked against other major currencies, such as the yen and the Swiss franc, as market sentiment improved. Despite earlier fears of a U.S. recession induced by tariffs, hopes for progress in trade negotiations with countries including South Korea and Japan offered further support to the U.S. currency.

(With inputs from agencies.)