The dollar index fell to around 98.6 on Tuesday, hitting a one-week low as optimism over a potential US-China trade deal dampened safe-haven demand for the currency, while investors braced for the Federal Reserve’s policy meeting. The US and China have agreed on a framework for a potential trade deal to be signed off by Presidents Trump and Xi this week, which includes agreements on rare earth minerals, soybean purchases and TikTok. President Trump is also set to meet Japanese Prime Minister Sanae Takaichi later today to discuss trade relations, defense spending, and possible Japanese investments in the US. Meanwhile, the Fed is widely expected to cut interest rates by 25 basis points on Wednesday, with markets watching for hints of another move in December. Central banks in Japan and the European Union are also expected to hold rates steady this week.