The U.S. dollar edged higher in early European trade Monday, helped by deteriorating risk sentiment after the small Chinese rate cut, as traders await the Federal Reserve's Jackson Hole symposium at the end of the week for a guide on future U.S. rates moves.
At 03:10 ET (07:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 103.312, not far removed from last week's two-month high of 103.59.
The People's Bank of China cut its one-year loan prime rate by 10 basis points, to 3.45% from 3.55%, earlier Monday, but kept five-year rates, which mortgages are largely based on, unchanged at 4.20%.
Away from China, the week's main focus will be the upcoming Jackson Hole symposium, with Fed chair Jerome Powell due to speak on Friday.
EUR/USD rose 0.1% to 1.0878, edging higher despite German producer prices falling more than expected on the year in July, with a hefty drop of 6.0% compared with the expected decrease of 5.1%.
Elsewhere, GBP/USD dropped 0.1% to 1.2731, USD/JPY edged higher to 145.41, with traders remaining on intervention watch, while AUD/USD also drifted up to 0.6405, trading close to nine-month lows.
Source : Investing.com
