FX.co ★ Dollar Hits 1-Week Low

The dollar index declined to approximately 98.6 on Tuesday, reaching a one-week low as optimism surrounding a prospective US-China trade agreement reduced the currency's allure as a safe haven. Investors are also anticipating the outcome of the Federal Reserve’s policy meeting. The United States and China have formulated a framework for a potential trade deal, anticipated to be signed by Presidents Trump and Xi this week. This framework encompasses agreements on rare earth minerals, soybean purchases, and TikTok. Additionally, President Trump is scheduled to meet Japanese Prime Minister Sanae Takaichi later today to discuss trade relations, defense spending, and potential Japanese investments in the United States. Meanwhile, it is largely expected that the Federal Reserve will reduce interest rates by 25 basis points on Wednesday, with markets closely monitoring any indications of further adjustments in December. Furthermore, the central banks of Japan and the European Union are anticipated to maintain steady interest rates this week.