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On Tuesday, the dollar bounced back against the yen as broader risk appetite improves after a promise made by Chinese President Xi Jinping in a speech to cut import tariffs.

Speaking at a Boao Forum in Asia in Hainan province, Xi promised to open the country’s economy further and lower import tariffs on products including cars.

His speech eased concerns about a trade conflict between the world’s two largest economies.

The dollar was up 0.3 percent at 107.130 yen after going as high as $107.245. while the dollar index against a basket of six major currencies inched up 0.05 percent 89.885 after shedding 0.3 percent on Monday.

The greenback had fallen in the two previous sessions as rhetoric from Chinese and U.S. policymakers had kept markets wary.

Trade Conflict Eased

Worries over trade conflict eased after Xi was seen to have refrained from upping the ante between Washington and Beijing in his first public reaction to the tariff standoff on Tuesday.

He also said that China’s reform and opening up will definitely succeed and that a Cold War mentality, zero-sum thinking, and isolationism would hit walls.

Other Currencies

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The Australian dollar, sensitive to shifts in risk sentiment, was up 0.5 percent at $0.7737, while the euro rose to 132.035 yen, its highest since March 14.

Against the dollar, the euro was steady at $1.2317 after rising about 0.35 percent the previous day, when it touched a six-day high of $1.2331.

The common currency was lifted after European Central Bank President Mario Draghi said on Monday that the slide in stock markets this year has not materially impacted eurozone financial conditions, suggesting policymakers remain calm about the recent market volatility.

Meanwhile, losses in the Japanese currency were limited by tensions stemming from other perceived risks, notably Syria.

Geopolitical risks are weighing on the dollar against the yen amid concerns that U.S.-Russia relations could worsen over the Syria issue.

Additionally, the Canadian dollar extended gains after rallying against the dollar overnight on higher oil prices and a business survey from the Bank of Canada that supported expectations for further interest rate hikes. The loonie reached C$1.2676 per dollar, its strongest since Feb. 27.

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