Currencies mark time before trade deal
LONDON, Jan 15: Major currencies were closeted within tight ranges on Wednesday as investors awaited the signing of a US-China trade deal, with the greenback holding above a one-week low against its rivals.
Though the formal agreement, due in early US hours, is aimed at drawing a line under 18 months of tit-for-tat tariff hikes that have hurt global growth, it will not end the trade dispute between the world's two largest economies.
"I don't think the market is fully convinced about a closure on the trade conflict front as the issue has caused a lot of damage to the world economy," said Neil Mellor, a senior FX strategist at BNY Mellon in London.
US Treasury Secretary Steven Mnuchin said existing tariffs on Chinese goods would stay, pending further talks.
Against a basket of its rivals, the dollar was steady at 97.4, just shy of a one-week low of 97.29. The Chinese currency in the offshore market was broadly steady. -Reuters