[10/January/2019] SANAA, Jan. 10 (Saba) - The dollar fell today near a three-month low on signs that the Federal Reserve may soon stop tightening its monetary policy.
Minutes of the board meeting late last month showed that many policy makers were in favor of keeping the central bank at a stable interest rate this year.
The dollar weakened as investors sold safe haven currencies due to growing optimism about US-China trade talks.
China and the United States extended trade talks in Beijing, boosting oil prices and morale in general.
This pushed the yuan to its highest level since August in foreign trade amid more recent assertions from Beijing on further financial support for the slowing economy.
The yuan surpassed the 6.8 yuan level of the dollar, which is important in domestic and foreign markets.
Currencies linked to commodities such as the Canadian dollar topped the list of beneficiaries of improved risk appetite this week. The Canadian currency hit 1.3230 to the dollar to hover near its highest level in more than a month supported by the recovery of oil prices.
The dollar index, which tracks the performance of the greenback versus a basket of six currencies, stabilized at 95.22 after losing 0.7 percent on Wednesday, while the euro rose marginally against the dollar to $ 1.1547.