The euro nudged higher to $1.0988.China's yuan dropped 0.4 per cent to hit five-week low in offshore trade, before it too recovered.The trade-sensitive Australian and New Zealand dollars hit week lows before turning flat. Against a basket of currencies the dollar fell 0.1 per cent to 99.012.The moves offered a preview of what to expect if the talks achieve little or nothing, said Joe Capurso, senior currency strategist at the Commonwealth Bank of Australia in Sydney. "The markets still seem to be travelling with a glimmer of optimism," said Ray Attrill, head of FX strategy at National Australia Bank, with one possibility a deal that staves off US tariff rises in return for agricultural purchases by China. "But as things stand that looks like a little bit naively optimistic that that was going to be the result of this. We're back to saying that chances are no trade deal.

Source: Economic Times October 10, 2019 00:33 UTC