The British pound fell 0.3% to $1.3238, while the dollar rose 0.1% against the Japanese yen to 152.275 yen. Today, the dollar is recovering from a weekly low against other major currencies, amid signs that the United States and China are on track to sign an agreement that would temporarily halt U.S. tariffs and China's restrictions on rare earth metal exports. U.S. President Donald Trump, speaking in South Korea ahead of his meeting with Chinese President Xi Jinping, said he believes they will strike 'a great deal for both sides.' Meanwhile, sources told Reuters that Chinese state-owned COFCO purchased three U.S. soybean shipments this week, another positive sign for a potential deal. Bart Wakabayashi, Tokyo branch manager at State Street, noted that the dollar's strength 'might be some relief from Trump's tariff festival.' Currency traders are also closely watching central bank decisions, especially from the U.S. Federal Reserve, which is widely expected to cut interest rates at its meeting concluding later today. The European Central Bank and the Bank of Japan are both expected to keep rates unchanged at their meeting tomorrow. The Australian dollar reversed losses, rising 0.3% to $0.6606, after quarterly consumer price data cast doubt on whether the Reserve Bank of Australia will cut rates next week or even at its December meeting. The dollar index, which measures the U.S. currency against six rivals, rose 0.2% to 98.899 after two consecutive days of declines that pushed it to a low since October 21 at 98.562 on Tuesday. The euro fell 0.2% to $1.1631.
