The dollar index hovered above 99.2 on Tuesday after advancing in the previous session, supported by easing US-China trade tensions as both sides expressed willingness to resume negotiations ahead of a possible meeting between President Donald Trump and Chinese President Xi Jinping later this month. On Friday, Trump had threatened steep tariff hikes on Chinese goods in response to Beijing’s new export controls on rare earth minerals but later struck a more conciliatory tone, saying trade relations “will all be fine.” Meanwhile, the ongoing US government shutdown has limited the flow of economic data, leaving investors to look toward upcoming earnings reports from major banks for clues on the economy’s health. The greenback held firm against most major peers and extended gains versus the yen amid heightened political uncertainty in Japan.
