Investing.com - The Chinese yuan was little changed, while the dollar gained on Monday as traders awaited the outcome of the U.S.-China trade talks due later this week.
The USD/CNY pair edged up 0.01% to 6.8794 by 1:15AM ET (05:15 GMT). The dollar has gained about 6% against the yuan since the start of the year as the Chinese currency weakened due to both escalating trade tensions as well as the recent Turkish lira crisis that drove up the demand of the U.S. dollar.
China and the U.S. announced on Thursday that lower-level trade talks would be held on August 22-23 to resolve intensifying trade disputes between the two countries. A nine-member delegation from Beijing will hold meetings with U.S. officials, according to officials from both countries.
In addition, reports over the weekend said U.S. President Donald Trump and Chinese leader Xi Jinping may meet in November.
The proposed talks came after the Trump administration imposed duties on $34 billion of Chinese goods in July as they accused China of unfair trade practices, adding that they will impose tariffs on a further $16 billion on Aug. 23.
Trump warned earlier that the U.S. may eventually target the entire $500 billion in Chinese exports to the U.S.
Bloomberg said on Monday that the weak Chinese yuan may be a focus when Chinese and U.S. officials meet later this month.
The mid-level talks will likely be about "how exactly are they going to deal with the RMB (renminbi)," Bloomberg reported citing Robin Brooks, chief economist at the Institute of International Finance.
The U.S. will demand that Beijing let the yuan appreciate after the Chinese currency appreciated almost 6% this year, he added.
Meanwhile, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, gained 0.1% to 96.1 on Monday.
The USD/JPY pair also gained 0.1%, while the AUD/USD pair fell 0.1%.