The U.S. dollar rose against the yen on Tuesday thanks to growing optimism the United States and China are on the verge of reaching a preliminary agreement to scale back their bruising trade war.
The yen and the Swiss franc, two currencies that are often bought as safe havens during times of economic or political strife, nursed losses as investors became more comfortable taking on risk.
The Australian dollar traded near its lowest in about a week before a Reserve Bank of Australia (RBA) meeting later on Tuesday. Monetary policy is likely to be kept steady, but an accompanying statement may provide clues to how much further rates could fall.
The dollar rose 0.12% to 108.70 yen in early trade in Asia, adding to a 0.4% gain on Monday.
The U.S. currency was a shade higher at 0.9886 Swiss Franc following a 0.2% gain in the previous session.
The dollar index against a basket of six major currencies stood at 97.556, close to its highest in almost a week.
The Australian dollar was little changed at $0.6888 but was up 0.17% to 74.88 yen.
Source : Reuters