The dollar got off to a weak start Tuesday, but has since stage a recovery and is now up slightly against its major rivals. The buck weakened in early trade as traders turned optimistic on the trade negotiations between the U.S. and China.

China's Commerce Ministry said Chinese Vice Premier Liu He spoke with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer.

"Both sides exchanged views on putting into effect the consensus reached by the two countries' leaders at their meeting, and pushing forward the timetable and roadmap for the next stage of economic and trade consultations work," the ministry said in a statement.

Producer prices in the U.S. unexpectedly showed a modest uptick in the month of November, according to a report released by the Labor Department on Tuesday. The Labor Department said its producer price index for final demand inched up by 0.1 percent in November after climbing by 0.6 percent in October. Economists had expected prices to be unchanged.

The dollar dropped to an early low of $1.14 against the Euro Tuesday, but has since rebounded to around $1.1315.

German investor confidence rose strongly in December, defying expectations for a modest weakening, but caution prevailed as financial analysts' assessment of the current economic situation again deteriorated sharply due to sluggish economic growth and uncertainties linked to global trade and Brexit.

The ZEW Indicator of Economic Sentiment for Germany rose 6.6 points to reach minus 17.5 points in December, results of a survey by the Centre for European Economic Research, or ZEW, showed on Tuesday.

Economists had forecast the index, which reflects analysts' economic expectations for the next 6 months, to worsen further to minus 25.

The buck fell to an early low of $1.2638 against the pound sterling Tuesday, but has since bounced back to around $1.2525.

UK wages rose at the fastest pace in a decade in the three months to October, suggesting that real pay growth is turning sustainable and contribute to economic growth if a "no-deal" Brexit is avoided.

Average wages including bonuses rose 3.3 percent year-on-year, which was the biggest increase since the May to July period of 2008, the Office for National Statistics said on Tuesday. Economists had forecast a 3 percent increase.

The greenback has risen to around Y113.350 against the Japanese Yen Tuesday afternoon, from a low of Y113.008 this morning.

The M2 money stock in Japan was up 2.3 percent on year in November, the Bank of Japan said on Tuesday, standing at 1,010.5 trillion yen. That was shy of expectations for an increase of 2.6 percent and down from 2.7 percent in October.

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