The U.S. dollar was little changed on Tuesday as markets waited for updates from trade talks between the United States and China in London.
Officials from both countries were meeting for a second day to resolve disputes that have moved beyond tariffs to export controls and rare earths.
The dollar index was flat to slightly lower at 98.95, close to the six-week low of 98.35 touched last week. Investors are looking to Wednesday’s U.S. consumer price index report for signs of inflation ahead of next week’s Federal Reserve meeting.
Markets expect the Fed to hold interest rates steady.
In trading, the dollar edged up to 144.68 yen, though the Japanese currency remains supported by safe-haven flows. The Bank of Japan is expected to keep rates unchanged next week.
Governor Kazuo Ueda said the timeline for rate hikes could be delayed due to external risks, including U.S. tariffs.
Sterling fell 0.4% to $1.3499 after British jobs data showed weaker wage growth. Average earnings in the U.K. rose by 5.2% in the three months to April, slower than expected. The Bank of England meets next week and is widely expected to keep its interest rate steady.
The euro inched up to $1.1432, while the Australian dollar, which often reflects risk sentiment, rose 0.1% to $0.6527.
U.S. President Donald Trump and Chinese President Xi Jinping spoke by phone last week ahead of the London meetings. The discussions follow a preliminary deal in May that eased some tariffs. Talks now focus on a possible trade involving U.S. semiconductor exports and Chinese rare earth supplies.
