Market News
Dollar strengthens after China-US truce eases growth fears - REUTERS
Summary
- Dollar rallies as US, China reach deal to cut tariffs
- Safe-haven currencies yen, Swiss franc weaken
- US inflation, retail sales data in focus this week
- India-Pakistan ceasefire helps support risk sentiment
NEW YORK, May 12 (Reuters) - The dollar surged on Monday as the United States and China reached a deal to temporarily cut reciprocal tariffs and tamped down concerns that a trade war between the world's two biggest economies could lead to a global recession.
The U.S. will reduce extra tariffs it imposed on Chinese imports in April to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, effective for 90 days. The de-escalation surpassed investor expectations, with many expecting an introductory round of talks with few, if any, agreements.
