Market News
Dollar reaches one-month high versus euro on trade deal optimism, Fed in view - REUTERS
Summary
- Euro poised for first monthly loss against dollar
- US-EU trade deal criticized by some euro zone leaders
- US and China agree to extend tariff truce
- Dollar index set for first month of gains this year
NEW YORK, July 29 (Reuters) - The dollar hit a one-month high versus the euro on Tuesday in the wake of a string of trade agreements between the United States and its major trade partners, while markets await interest rate decisions from the Federal Reserve and the Bank of Japan.
U.S. President Donald Trump struck his biggest trade deal yet with the European Union on Sunday, which imposes a 15% import tariff on most EU goods and includes $600 billion of EU investments into the United States. It tops a $550 billion deal signed with Japan last week that includes a 15% reciprocal tariff.
U.S. and Chinese officials finished two days of talks in Stockholm on Tuesday. While there were no signs of breakthroughs, both sides agreed to extend a 90-day tariff truce struck in mid-May, China's top trade negotiator, Li Chenggang, said.
The euro was down 0.39% against the dollar at $1.154775, hitting its lowest level since June 23. The single currency had dropped 1.29% in the previous session, its steepest one-day decline since mid-May. The euro is poised to record its first monthly loss against the dollar this year.
