The greenback fell on Monday as investors pulled out of the safe-haven currency with optimism rising over upcoming US-China trade talks, and after US President Donald Trump criticized the pace of the Federal Reserve’s interest-rate hikes.
The dollar index .DXY, which weighs the greenback against a basket of six rival currencies, fell 0.3 percent to a low of 95.83 in the North American session ahead of trade talks between the United States and China, due this week, which investors hope will ease tensions between the world’s two biggest economies.
Dealers cited speculation that the talks could set the stage for a summit between US President Donald Trump and Chinese President Xi Jinping in November. Trade tensions have on the whole been a boon to the dollar, which benefits from geopolitical turmoil as the market seeks out less risky investments.
“The market is long dollars. There’s some caution that this week’s trade talks – US-China…