Singapore: The US dollar today trimmed its gains at the start of Asian trading, following a four-week rally, as markets digested the surprise downgrade of the US government’s credit rating, while persistent trade tensions weighed on investor sentiment.

According to Oman News Agency, last week, the dollar had climbed 0.6% against a basket of major currencies, buoyed by easing fears of a global recession after a temporary trade truce was reached between the United States and China. However, recent economic data pointed to rising import prices and declining consumer confidence, dampening optimism.

The greenback fell 0.3% to 145.22 yen, and slipped 0.2% against the Swiss franc, another traditional safe-haven asset. Meanwhile, the Australian dollar rose 0.1% to $0.6409, recovering slightly after three consecutive days of losses. Markets are pricing in a 25-basis-point rate cut by the Reserve Bank of Australia, which currently holds the cash rate at 4.10%, ahead of its policy decision tomorrow (Tuesday).

The euro held steady at $1.1185, up 0.2%, while the British pound traded at $1.3299, gaining 0.1%. The New Zealand dollar also edged higher by 0.1%, reaching $0.5888.