The dollar index was flat at 98.25 after a 0.4% decline last week.
Against the yen, the dollar was unchanged at ¥147.685, with Japanese markets closed for the Mountain Day holiday.
Trade talks were in focus as Trump’s Aug 12 deadline for a deal between the US and China loomed, particularly around chip policy.
“The market has fully priced in the idea that we’re going to get an extension,” said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne, adding that another 90-day truce was most likely.
With the US and China seeking to close a deal that would avoid imposing triple-digit tariffs on each other’s goods, the Financial Times reported yesterday that chip manufacturers Nvidia and AMD agreed to allocate 15% of their revenues from sales in China to the US government under an arrangement to obtain export licences for the semiconductors.
The report follows a warning that Nvidia’s H20 chips pose security concerns for China, a social media account affiliated with the country’s state media said yesterday.
“I don’t know if that’s going to be a good thing or a bad thing, but if it puts closure on the matter it’s not a bad outcome,” Weston said.
“If this is Trump says 15% and we’ll call it a day, that may not be too bad,” he added.
The offshore yuan fluctuated between gains and losses after data on the weekend showed China’s producer prices fell more than expected in July, while consumer prices were unchanged.
The Australian dollar fetched US$0.6515, down 0.2% in early trade ahead of a rate decision from the Reserve Bank of Australia tomorrow, where the central bank is widely expected to cut interest rates by 25 basis points to 3.60% after inflation for the second quarter missed expectations and the jobless rate hit a 3-1/2-year high.
The kiwi last traded at US$0.59455, down 0.13%, while the British pound traded at US$1.34405, down 0.1% so far on the day.
In crypto markets, Bitcoin rose 0.7% to US$119,154, not far from its previous record, while Ether was up 1.1% at US$4,267, after reaching its highest since December 2021 yesterday.
Elsewhere, personnel moves at key US monetary policy institutions were also in focus.
US treasury secretary Scott Bessent said the new Federal Reserve (Fed) chair should be someone “who can examine the whole organisation” as the Fed’s mission has included so many things outside of monetary policy and has put its independence at risk, Japan’s Nikkei newspaper reported.
The Trump administration was also interviewing candidates to lead the bureau of labor statistics including E J Antoni, chief economist at the conservative Heritage Foundation, The Wall Street Journal reported yesterday, citing a senior administration official.