2019.08.2716:57:00UTC+00Dollar Mostly Subdued Amid Trade Uncertainty

The U.S. dollar index stayed below the unchanged line on Tuesday with the currency turning in a mixed performance against peers, after having exhibited strength in the previous session on renewed optimism about resumption of U.S.-China trade talks.

Trade war tensions escalated over the weekend following the U.S. retaliated to China's move to impose tariffs on about $75 billion worth of American products, by announcing additional tariffs on over $550 billion worth of Chinese products that come into the U.S.

However, concerns faded a bit on Monday after President Donald Trump told reporters at the G7 Summit that Chinese officials got in touch with U.S. officials to restart negotiations.

Despite Trump's comments, there is still uncertainty about officials of the two countries starting another round of discussions on trade, as Chinese Foreign Ministry spokesman Geng Shuang continues to maintain that he has not heard of any recent call.

Geng told reporters at a press briefing on Tuesday that China hopes the U.S. will return to rationality, stop its wrong practices and create conditions for the two sides to resume talks on the basis of mutual respect.

The dollar index declined to a low of 97.86 and despite regaining some ground, was still down in negative territory in late morning trades. It was trailing its previous close by 0.03% at 98.05.

Against the euro, the dollar was up 0.11% at 1.1089.

The Pound Sterling was gaining more than 0.5% with a unit of Sterling fetching $1.2286.

The Japanese currency Yen traded positive on safe-haven appeal. In late afternoon trades, the dollar was trading at 105.75 yen, as against 106.13 yen late Monday.

The dollar was up against the loonie, Aussie and Swiss franc.

In economic news, according to a report from the Conference Board, consumer confidence in the month of May showed a slight deterioration.

The board said its consumer confidence index edged down to 135.1 in August after surging up 135.8 in July. Economists had expected the index to show a much more substantial decrease to 130.0.