US dollar rebounds on signs of easing trade tensions between China and the US

US dollar rose today, erasing losses from the previous day after a report that China was considering exempting some US goods from tariffs, boosting hopes of a de-escalation in the trade war between the world’s two largest economies.

The US currency has been hit hard this week by conflicting signals regarding a de-escalation in the tense relations between Washington and Beijing, according to Reuters.

The dollar jumped 0.7% to 143.665 yen by 04:35 GMT, and rose 0.6% to 0.8318 Swiss francs. The euro fell 0.5% to $1.1327, and the pound fell 0.4% to $1.3287. Friday’s rise puts the dollar index on track for a weekly gain of about 0.6%, which would end a four-week losing streak driven by fears that tariffs could lead to a US recession and a loss of confidence in US assets due to Trump’s erratic policies.