Muscat: The US dollar today edged lower but retained most of its recent gains, buoyed by ongoing optimism over a potential tariff agreement between the United States and China. The Chinese yuan climbed to a six-month high, reaching 7.1855 against the dollar. The Australian dollar advanced 0.64% to $0.6412, while the New Zealand dollar gained 0.55% to trade at $0.5889. The yen and the euro recovered after sharp declines in the previous session. The yen rose 0.48% to 147.76 per dollar, following a drop of more than 2% yesterday (Monday). The euro added 0.25% to reach $1.1114. Elsewhere, the US dollar slipped 0.25% to 0.8429 Swiss francs, partially retracing Monday’s 1.6% surge. The British pound edged up 0.16% to $1.3199.

According to Oman News Agency, the currency market has been experiencing fluctuations as investors keep a close watch on developments in the trade talks between the US and China. Market participants are optimistic that a resolution could ease tensions and lead to more stable international trade relations, which in turn is affecting currency valuations across the board. The recent performance of the US dollar and other major currencies reflects the market’s reaction to these expectations.