Dollar drops as stocks surge amid trade optimism

The US dollar fell against most of major currencies today, as investors' risk appetite improved and demand surged on stocks, to shift away from precious metals and US dollar.

Which comes amid high market sentiment over the US-China trade talks, after the 2-day round of high-level talks between.

Bloomberg quoted sources that the US and China reached a partial trade agreement today, under which China will buy more US agricultural products and the US ease the tariffs. 

The partial deal is temporary in preparation for a final agreement between Washington and Beijing that could include of trade war and the removal of tariffs and the lift of the restrictions on Huawei.

Otherwise, the US Federal Reserve announced today a plan to purchase short-term treasury bills worth $60 billion a month until the second quarter of 2020 and will expand repo operations until January, to ease funding pressures on the US banking system.

As of 17:57 GMT, the dollar index fell against a basket of currencies by 0.4% to 98.2 points, with an intraday high of 98.7 and a low of 98.2 points.