Risk aversion abates as US-China set to talk

The dollar nudged higher on Monday on confirmation that talks will be held this week between China and the United States, which investors hope will lead to an easing of their trade disputes.

The dollar against its major rivals ticked up 0.11 percent to 96.211 after sliding more than half a percent on Friday.

Growing trade tensions between the United States and its trading partners, in addition to a plunge in the Turkish lira, has weighed heavily on emerging market currencies.

Receding fears over the Turkish lira's late plunge on Friday reduced risk aversion in the broader markets, lifting the euro.

The Turkish lira had snapped a three-day rebound On Friday, sliding more than 5 percent against the dollar on fears the United States would impose more economic sanctions unless Turkey handed over detained American pastor Andrew Brunson.

The euro, which had slipped to a 13-month low early last week amid concerns that the Turkish crisis could hurt European banks, bounced back on Friday, taking the lira's retreat in stride.

The single currency rose 0.55 percent on Friday, and was down about 0.1 percent at 1.1426 versus the dollar on Monday. USD/JPY was slightly weaker at 110.63 after shedding 0.35 percent on Friday.

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