Dollar wavers as investors brace for Trump-Putin summit
The dollar moved slightly lower against other major currencies in choppy action on Monday, as traders erred on the side of caution ahead of a closely watched summit between U.S. President Donald Trump and Russian President Vladimir Putin.
The ICE U.S. Dollar index DXY, -0.18% was down 0.1% at 94.646, building on a 0.1% loss from Friday.
The dollar is “running out of fresh positive catalysts as Trump’s European tour rolls on,” said Viraj Patel, FX strategist at ING, in a note on Monday.
“We’ve been privy to the full repertoire of Trumpian bombast in the past week, with the President even going as far as calling the EU, China and Russia his ‘foes’. Aside from the mild entertainment, markets have seemingly learnt to live with Trump’s way of doing diplomacy — and we suspect investors will continue to prioritize the actual policy actions of the U.S. administration,” he added.
Trump and Putin are expected to discuss arms control, alleged Russian meddling in the U.S. 2016 election and Ukraine when they meet later on Monday. Analysts said the summit will be eyed for any hints that the U.S. sanctions against Russia will be lifted.
In other currencies, the euro EURUSD, +0.1968% climbed to $1.1700 from $1.1685 late Friday in New York.
The pound GBPUSD, +0.1965% advanced to $1.3254 from $1.3234 on Friday.
The yen USDJPY, +0.04% was the only major currency losing traction against the dollar on Monday, with the buck buying ¥112.43 compared with ¥112.35 on Friday.
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