FOREX-Dollar gains versus yen, franc on Sino-US trade optimism;...

Dollar rises after U.S.-China trade talks ease tensions



U.S. inflation and retail sales data may impact Fed expectations



India-Pakistan ceasefire, looming Ukraine-Russia talks calm tensions

(Updates prices, adds Chinese yuan and analyst comment in penultimate paragraphs.)

By Rocky Swift

TOKYO, May 12 (Reuters) - The dollar climbed against its safe-haven counterparts on Monday after weekend talks between the United States and China eased concerns of a damaging trade war between the world's two biggest economies while global hot spots appeared to cool.

The greenback, Treasuries and equities have taken a beating since U.S. President Donald Trump's often chaotic roll out of sweeping tariffs last month shook confidence in American assets.

After talks in Geneva, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer on Sunday said a deal had been reached with China to cut the U.S. trade deficit. Details were scarce but a joint statement is expected on Monday.

The focus will also be on U.S. earnings and data this week, including consumer proxy cheap price index (CPI) figures on Tuesday, for indications of how the trade spat has impacted the economy and expectations for further rate cuts by the U.S. Federal Reserve.

"I suspect that talk of the demise of the U.S. dollar as a reserve currency is premature and that we'll see a more normal trading pattern resume once we have some clarity around global trade," said Michael McCarthy, chief executive officer of online trading platform Moomoo Australia.

"U.S. inflation data is obviously going to be very important, and for the Aussie we'll be looking at the unemployment data this week, but I think it's trade talks that are very likely to dominate market action," he added.

In addition to U.S. inflation data for last month, April retail sales due on Thursday will also provide the latest pulse on consumer spending.

The greenback climbed 0.3% to 145.76 yen and 0.5% to 0.8333 Swiss francs.

The dollar index was little changed near a one-month high. The gauge is still down 3.5% from the April 2 announcement of Trump's "Liberation Day" global tariffs.

On the geopolitical front, India and Pakistan announced a ceasefire over the weekend following the four days of fighting between the nuclear powers that had rattled markets. And Ukrainian President Volodymyr Zelenskiy said he was ready to meet Russian leader Vladimir Putin in Turkey on Thursday for direct talks, the first since the early months of the 2022 invasion.

The New Zealand and Australian dollars, widely seen as proxies for risk assets, advanced 0.4% to $0.5931 and tacked on 0.2% at $0.6429, respectively.

The euro stood at $1.1231, down 0.2%. Sterling traded at $1.3288, down 0.3%.

China's offshore yuan rose about 0.2% to 7.2252 yuan per dollar. Progress in the U.S.-China talks is positive for markets as it provides a reference point for other trading partners, said Jason Chan, senior investment strategist at Bank of East Asia.

"If even China can make a deal, then other Asian countries like Japan, India, and SEA countries could follow and progress their own trade talks," Chan said. (Reporting by Rocky Swift and Jiaxing Li; Editing by Stephen Coates & Shri Navaratnam)