The U.S. Dollar (DXY) rallied to over a one-month high on Monday after the United States and China agreed to a deal to slash reciprocal tariffs for 90 days following weekend trade talks in Geneva aimed at de-escalating tensions.

LONDON: Stocks and the US dollar surged after the United States and China said they agreed on a 90-day pause on tariffs and reciprocal duties would drop sharply, giving investors some confidence that a full-scale trade war may have been averted.

The dollar retreated slightly on Tuesday but held on to most of the previous session’s gains on lingering optimism over a tariff deal between the United States and China, which tapped the brakes on a trade war between the world's two largest economies.