SINGAPORE- The US dollar began Monday where it left off last week, caught between pressure from worries about the lagging US economic recovery and support from rising US bond yields and safe-harbor demand.
A boost to sentiment from the postponement of the US-China trade deal review – which leaves the deal intact – was muted by uncertainty, ahead of a week a week that includes Federal Reserve minutes and the Democrats’ nomination convention.
Against a basket of currencies the dollar traded under gentle pressure at 93.039 on
Monday, roughly in the middle of the range it has held since hitting a two-year low at the end of July.
The risk-sensitive Australian dollar inched up to a three-session high of $0.7194, but also remained contained in the channel it has traded in for a week.
Other Asian currencies, such as the won and rupiah edged lower, while the kiwi remained weighted at $0.6534 by last week’s dovish language from the central bank.
The yen was steady at 106.54 per dollar, having dipped last week as a jump in US yields drew Japanese investment to US Treasuries.
The United States and China delayed a Saturday review of their Phase 1 trade deal, people familiar with the plans told Reuters, citing scheduling conflicts.
