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U.S. Dollar Unchanged as News U.S. Tariffs Set to Kick in

5/10/2019, 2:30:17 PMBasics of Trading
U.S. Dollar Unchanged as News U.S. Tariffs Set to Kick in

The U.S. dollar was little changed on Friday in Asia ahead of a tariff hike on Chinese goods later in the day.

The U.S. dollar index that tracks the greenback against a basket of other currencies was unchanged at 97.159 by 11:15 PM ET (03:15 GMT).

A tariff hike to 25% from the current 10% is set to kick in later in the day. U.S. President Donald Trump and his administration made the decision to add more tariffs on Sunday, after China reportedly revised a draft deal and weakened commitments to meet U.S. demands for trade reform, according to Trump and other U.S. officials.

"We were getting very close to a deal, then they started to renegotiate the deal. We can't have that. We can't have that," Trump said at an event at the White House.

Top U.S. and Chinese negotiators ended the first of two days of discussions in Washington to rescue a trade deal that was seemingly collapsing.

Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin talked for 90 minutes on Thursday and were expected to resume talks on Friday, Reuters reported on Friday.

Liu said that hiking tariffs "is very disadvantageous to both parties".

"We come here this time, under pressure, which shows China's greatest sincerity, and want to sincerely, confidently, and rationally resolve certain disagreements or differences facing China and the United States. I think there is hope," he said.

Hopes of an agreement were revived however after Trump said on Thursday that is still possible to reach a deal as his Chinese counterpart Xi Jinping wrote him “a beautiful letter” and that they would speak on the phone.

The Chinese yuan was under pressure earlier in the day, marking a fresh four-month low against the U.S. dollar, before recovering on Friday.

The USD/CNY pair last traded at 6.8108, down 0.2%.

GBP/USD rose 0.04% to 1.3018, but gains were limited amid expectations that Brexit talks between the ruling Conservative and opposition Labour parties are unlikely to result in any meaningful progress to break the deadlock.