
Dollar slips after rally, focus shifts to US-China trade talks
The dollar slipped against all major currencies on Monday, as exuberance over an upbeat US employment report gave way to caution ahead of pivotal US-China trade talks set to take place in London later in the day.
The talks come at a crucial time for both economies, with China grappling with deflation and trade uncertainty dampening sentiment among US businesses and consumers, prompting investors to reassess the dollar's safe-haven status.
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are expected to represent the US at the trade talks, while vice premier He Lifeng would likely be present with the Chinese delegation.
"A deal to keep talking might be better than nothing, but unless we see a concrete breakthrough, the impact on sentimentis likely to remain muted," said Charu Chanana, chief investment strategist at Saxo Markets.
Friday's upbeat US jobs report yielded some relief for investors following other bleak economic data last week.
The dollar advanced against major peers after the employment report, which cut weekly declines in the dollar index by more than half. However, it is still down by more than 8.6% for the year.
On Monday, the yen firmed 0.31% at 144.425 per dollar, as data showed Japan's economy contracted at a slower-than-expected pace in the January-March period, while Prime Minister Shigeru Ishiba weighed in on the impact interest rates could have on the economy.
The euro edged up 0.18% and was last at $1.1417 as markets continued to price-in the European Central Bank's hawkish monetary policy outlook issued last week.
The Swiss franc inched up 0.17% to 0.8209 per dollar, while the sterling rose 0.27% to $1.3555.
The dollar index, which measures the US currency against six others, dipped 0.07% to 99.045, as yields on US Treasury tenors eased marginally after Friday's jump.
Also on the trade front was a report that said Japan's chief trade negotiator Ryosei Akazawa is planning a sixth round of talks in Washington.
An inflation report out of the US for the month of May will be in the spotlight later in the week as investors and Federal Reserve policymakers look for evidence on the damage trade restrictive policies have had on the economy.
Fed officials are in a blackout period ahead of their policy meeting next week, but they have signalled that they are in no rush to cut interest rates and signs of better-than-feared economic resilience are likely to further cement their stance.
Interest rate futures indicate that investors are anticipating the central bank may cut borrowing costs by 25 basis points, with the earliest move expected in October this year, according to data compiled by LSEG.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Irish Sun
2 hours ago
- The Irish Sun
New Tesla Model Y is a more chiselled, quieter version of mega-seller… it moves the game on for a tech-rich family motor
I'M struggling to keep up with Elon Musk and his on/ off bromance with Donald Trump. Are they buddies again? Advertisement 6 The world's best-selling car was fugly… but two years on, it's had a sharp new makeover Credit: simon thompson 6 The cabin gets a techy glow-up with the gear selector shifted to the screen - and wraparound LEDs Credit: simon thompson 6 The new Model Y shines alongside its less attractive predecessor Credit: simon thompson Or still kicking lumps out of each other on X? One thing I do know is that Some say it's because Musk backed Trump for President, followed by that awkward hand gesture at the inauguration. Some say it's the Chinese invasion. Maybe in part. Advertisement READ MORE ROAD TESTS But mostly it's due to Tesla halting production of the mega-selling Model Y at its Now everything is sorted and sales are likely to take off like a Space X rocket. Here are ten things you need to know about the new motor. 1. The old one was fugly. Advertisement Most read in Motors That's sorted now. This new one is more chiselled. First glimpse at limited edition EV hitting UK in just weeks with slick new look It's like they've taken a photo of the The lower nose helps it slice through the air, adding a bit more range. 2. They've deleted the Tesla badge from the bonnet. Confident move. Advertisement 3. But the biggest change is at the back. There's a new reflective lightbar which highlights T E S L A written out in full. Also, the rear diffuser sticks out more. So repair bills will be lower if you reverse into something you shouldn't. Which helps with insurance too. 4. The 'frunk' — front trunk — now has a plughole in it. So you can fill it with ice for summer barbecues. Or store muddy boots . 5. Cabin. The gear selector has moved to the big screen — like a Model 3. Advertisement But they've kept the indicator stalk. Unlike a Model 3. The wrapround LED strip is new. The front seats will warm and cool your back. They didn't before. Other things. The seat bases are longer in the back. So they're more comfortable. There's a little entertainment screen to play arcade games. Advertisement The front passenger seat moves forward at the touch of a button for limo-like legroom. 6. Sound. It's now much quieter in here which makes it feel more expensive. There's extra insulation. Acoustic glass. Redesigned door seals. All little details that add up. 7. The boot is a smidge smaller. But you'll never notice. I had to look it up. Advertisement The seats now fold up and down automatically, where they only folded flat before. You had to push them back up. 8. The suspension has been tweaked so it rides better. Batteries and motors are unchanged. But improved regenerative braking tech adds more electrons. Every version should do 300 miles-plus, with the rear-wheel drive Long Range hitting 387 miles. Advertisement There's talk of a bigger battery nudging 500 miles. 9. Price. The standard rear-drive Model Y starts at £45k, which is £2k more than before. Not bad. The all-singing all-wheel drive Long Range is £52k. 10. This isn't specific to Model Y but Tesla's Supercharger network blows everyone else out of the water. Advertisement It's next-level good. Quick. Easy. No cards. No apps. And cheaper too. It doesn't really matter if you like Musk or not. If you want a minimalist, tech-rich family motor, Model Y moves the game on. 6 There's a little entertainment screen to play arcade games Credit: simon thompson 6 The old one was fugly. The world's best-selling car two years on the bounce, yes. But still fugly Credit: simon thompson Advertisement 6 Elon Musk's Tesla brand has been having a tough time recently, but sales are now likely to take off Credit: Getty KEY FACTS: TESLA MODEL Y Price: £44,990 Battery: 60kWh Power: 295hp 0-62mph: 5.9 secs Top speed: 125mph Range: 311 miles CO2: 0g/km Out: Now


RTÉ News
3 hours ago
- RTÉ News
Trump trade war - tariff deadlines & key upcoming events
The twists and turns in US President Donald Trump's tariff policies have not only rattled global financial markets but have also taken investors on a roller-coaster ride. Companies are counting the cost of the trade war that is now being estimated at more than $34 billion in lost sales and higher expenses, a Reuters analysis showed. Adding to the uncertainty are tariff-related legal challenges and Trump's assertion that he would hammer out bilateral deals with trade partners, even though agreements remain elusive, save a pact with Britain this month. Here's a timeline for key upcoming events and dates that could have a bearing on the US tariff policy: June 11, 2025 - Trump says US deal with China is done, with Beijing to supply magnets and rare earth minerals. A White House official said the agreement allows the US to charge a 55% tariff on imported Chinese goods, while China would charge a 10% tariff on US imports. The deal is subject to final approval from President Trump and Chinese President Xi Jinping. June 15-17 - Trump will attend the annual summit of G7 nations in Canada. The summit will be hosted at the Rocky Mountain resort town of Kananaskis, Alberta, with tariffs expected to be a major topic of discussion. July 8 - "Liberation Day" tariffs to take effect following the 90-day suspension period, potentially affecting imports from multiple countries.


Irish Independent
7 hours ago
- Irish Independent
Dublin-based aircraft lessor AerCap secures $1bn in UK judgment
Lessor sued insurers after Russia seized jets following Ukraine invasion Dublin-headquartered aircraft lessor AerCap has secured an award of more than $1bn (€874m) in London's High Court, after suing insurers when its jets were seized in Russia following the country's invasion of Ukraine. The $1.03bn award for AerCap, whose chief executive is Gus Kelly, is on top of previous recoveries it has secured in past settlements related to jets and engines stranded in Russia. AerCap, the world's largest aircraft lessor, had 116 jets and 23 engines seized in Russia following its invasion of Ukraine. The Irish company had initiated legal action in London against a slew of insurance and reinsurance firms including Lloyds, Liberty Mutual, Chubb, Fidelis and Swiss Re. In 2023, it secured $572m in a full settlement of claims under insurance policies of Russian carriers Ural Airlines and S7 in respect of a total of 47 aircraft and five spare engines. These were owned by AerCap entities and were leased to the airlines at the time of the Russian invasion of Ukraine in 2022. The action just concluded in the High Court in London followed a 12-week trial that included five other aircraft lessors, with AerCap acting as the lead claimant. AerCap was represented by international law firm Herbert Smith Freehills Kramer in the action. The other claimants included Dubai Aerospace, KKR's KDAC Aviation, Merx Aviation and a leasing unit ultimately owned by US-based MassMutual. During the course of the trial KDAC settled with its insurers, and its action was dismissed. There was a dispute between all-risk insurers and war-risk insurers The insurers had previously unsuccessfully challenged the jurisdiction of the UK court to hear the action, arguing it should be staged in Moscow. The judgment released on Wednesday relates to a total of 147 aircraft, 16 standalone engines and one other piece of equipment. The insured value of these amounted to over $4.5bn. A key issue concerned whether the lessors' aircraft had been lost to the claimants, and if so when and what caused such a loss. In particular, there was a dispute between all-risk insurers and war-risk insurers as to whether the cause of any loss of the aircraft was a commercial decision of the Russian airlines leasing the aircraft. In that case the all-risk insurers would be liable to the claimants, or an act or order of the Russian government, in which case the war-risks insurers would be so liable. Mr Justice Butcher found in favour of AerCap and the other lessors, ruling that their war-risk insurance policies were triggered following the seizure of their aircraft. He concluded that the aircraft had been lost, and that the loss occurred on March 19, 2022, when a piece of Russian legislation banned the export of aircraft and aircraft equipment from their country. There was also an issue as to whether EU or US sanctions prevented the insurers from indemnifying the claimants for the loss of aircraft which had been leased to Russian airlines. The judgment concluded that insurers were not so prevented by sanctions.