Dollar Weakens Ahead of Major U.S.–China Summit and Central-Bank Policy Decisions

The U.S. dollar slipped on Tuesday as markets eyed a series of key central-bank meetings and a highly anticipated meeting between Donald Trump and Xi Jinping in South Korea — expected to shape trade policy and global monetary direction.

The dollar index, which tracks the U.S. currency against six major rivals, was around 98.79, down about 0.15 % from the previous session.

While the euro climbed to approximately $1.1655 and the British pound reached $1.3344, riskier currencies like the Australian and New Zealand dollars gained on rising risk appetite.

Traders are positioning for a likely 25-basis-point rate cut from the Federal Reserve this week and watching for signals on its quantitative-tightening strategy. Meeting decisions from the European Central Bank and Bank of Japan are also adding to the market’s cautious tone.

Despite positive momentum surrounding possible U.S.–China trade progress, analysts remain sceptical about a comprehensive deal, keeping the dollar’s upside limited for now.