Dollar hits one-week high vs yen as risk sentiment improves

Positive news on the Sino-U.S. trade front lifted market sentiment on Monday, driving the U.S. dollar to a one-week high against the safe-haven yen, while the British pound rose as election polls over the weekend continued to show a sizeable lead for the Conservative party. China and the United States are very close to a “phase one” trade deal, the Global Times, a tabloid run by the ruling Communist Party’s official People’s Daily, said on Monday, discounting “negative” media reports. Against the yen, which tends to strengthen during times of geopolitical or financial stress due to Japan’s standing as the world’s biggest creditor, the dollar was 0.28% higher at 108.94 yen, a 1-week high. Market sentiment was also helped by news over the weekend that China was seeking to raise substantially the upper limits for intellectual property violation fines.