Investing.com – The dollar inched down on Monday amid geopolitical tensions as investors pause ahead of a planned meeting between U.S.-China leaders later this week.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.04% to 96.785 as of 10:09 AM ET (15:09 GMT), retreating from one-week highs of 96.96 reached overnight.
Trade worries weighed on the greenback, as investors wait for the G20 summit in Argentina on Friday. U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet on the sidelines to discuss a possible trade deal.
The euro pared back earlier gains the dollar, with EUR/USD rising 0.12% to 1.1350, boosted by news that disagreements between Rome and Europe could be resolved. Italian Deputy Prime Minister Matteo Salvini indicated that his government could lower its borrowing targets, which the European Commission had said is against EU fiscal rules.
The pound was also higher, with GBP/USD up 0.20% to 1.2839. On Sunday, EU leaders approved the terms of the UK’s withdrawal from the bloc, the Brexit deal will have to pass a vote in the British parliament in early December.
The dollar was higher against the safe-heaven Japanese yen, with USD/JPY rising 0.41% to 113.43. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.