2019.12.3120:38:00UTC+00Dollar Extends Weakness, Declines To 6-month Low

The U.S. dollar extended its slide and slipped to a 6-month low on Tuesday as renewed optimism about global economic growth and U.S.-China trade deal pushed up values of riskier currencies.

The dollar index declined to a low of 96.36 in early trades Tuesday, and despite recovering some lost ground, was still notably lower at 96.49 around late afternoon, trailing its previous close by about 0.26%.

In 2019, the dollar has gained a net quarter percent, compared to nearly a gain of nearly 4.5% in 2018.

Against the Euro, the dollar weakened to $1.1241 on Tuesday before paring some losses. At $1.1216, it was still down in negative territory with a loss of about 0.12%.

The Pound Sterling was up more than 1% with a unit of sterling fetching $1.3246, as compared to $1.3112 on Monday. The sterling rose to a high of $1.3282 in the session before paring some gains.

The safe-haven Japanese Yen gained as well against the dollar, rising to 108.66 a dollar, from 108.88 yen a dollar late on Monday.

The Aussie gained more than 0.3% against the dollar at 0.7107. The dollar weakened to 0.9677 against Swiss franc and slipped more than 0.6% against the loonie, at $1.2985.

In economic news, Official data showed that China factory activity expanded for a second straight month in December.

The manufacturing PMI held steady at 50.2 in December, while it was forecast to fall to 50.0.

A report released by the Conference Board on Tuesday showed U.S. consumer confidence dipped from an upwardly revised level in the month of December.

The Conference Board said its consumer confidence index edged down to 126.5 in December from an upwardly revised 126.8 in November.

Economists had expected the index to rise to 128.2 from the 125.5 originally reported for the previous month.

In trade news, U.S. President Donald Trump revealed in a post on Twitter this morning that the phase one trade deal will be signed during a White House ceremony on January 15th.

"I will be signing our very large and comprehensive Phase One Trade Deal with China on January 15. The ceremony will take place at the White House. High level representatives of China will be present. At a later date I will be going to Beijing where talks will begin on Phase Two!" Trump tweeted.

Recent reports have indicated Chinese Vice Premier Liu He, Beijing's top trade negotiator, will be on hand to sign the agreement.