The dollar index was modestly higher on Wednesday afternoon in Asia, propelled by the greenback’s gains against the yen, even as the currency struggled against most of its other trading partners. The index was up 0.07 percent to 96.58 .DXY as of 3:06 p.m. HK/SIN, with the dollar 0.27 percent higher against the yen, to 110.91. The dollar fell against the euro, down 0.05 percent to $1.1334. Losses were even steeper against the pound, where the dollar eased 0.10 percent to $1.3049.
The dollar struggled during Wednesday’s Asian session in advance of the release of the Federal Reserve’s latest policy meeting minutes, as traders worried that potentially dovish minutes would continue to pressure the dollar. The yen, traditionally a safe-haven currency during times of concern, has weakened in recent sessions as global stock markets have risen and traders have renewed their risk appetites. Wall Street benchmark indexes enjoyed another day of gains yesterday, and Asian markets followed suit on Wednesday. The Nikkei 225 was up 0.60, Hong Kong’s Hang Seng Index was up 0.90 percent, and South Korea’s Kospi advanced 1.09 percent. China’s benchmark indexes were also higher, with the Shanghai Composite gaining 0.20 percent and the Shenzhen Composite up 0.41 percent.
Traders remained optimistic that a trade deal would be made between Beijing and Washington. According to reports by CNBC and Bloomberg, the U.S. has asked China to stabilize its currency as part of the trade deal. If accomplished, this would prevent China from devaluing its currency to counteract Trump’s tariffs. The highest-level talks will begin tomorrow.