Mubasher: US dollar stood near a one-month low against a basket of peers earlier on Tuesday as a trade deal between US and Mexico, that was aimed at revamping the North American Free Trade Agreement (NAFTA), encouraged investor appetite for riskier assets.

By 9:34 am GMT, the US dollar index, which tracks the greenback against a group of six other currencies, fell 0.10% to 94.6830, after hitting its lowest level in early trading in Asia at 94.68 before consolidating its losses.

However, market moves were limited as foreign exchange (FX) traders in recent days expected some deal to come, with both Canadian dollar (CAD) and Mexican peso (MXN) were largely stable against the greenback.

“The deal provides the impression that the US president is less interested in causing a row at the moment but is making an effort to come home with constructive results from the theatres of trade war,” Commerzbank FX strategist Esther Reichelt told Thomson Reuters.

Though the greenback was struggling against its key rivals, the euro (EUR) stabilised around  $1.1685 after Italian deputy premier told the London-based newspaper that the country’s public deficit could exceed the European Union’s (EU) 3% gross domestic product (GDP) ceiling.  

By 9:58 am GMT, the EUR/USD pair rose 0.22% to $1.1704, while the GBP/USD pair declined 0.10% to $1.2905.