The dollar barely recouped its heavy losses on Tuesday as investors were no clearer on whether a de-escalation of the Sino-U.S. trade war was underway, with Treasury Secretary Scott Bessent suggesting the onus was on China to start negotiations.

Beijing appears to be bedding in for a protracted battle with the US over tariffs. The Chinese government laid out policies Monday to aid its exporters affected by the trade war, including loan support for troubled firms and measures to further boost domestic consumption.

China on Monday said it was on the right side of history in its gruelling trade war with the United States. Recall that the US President Donald Trump, since returning to the presidency in January, has imposed 10 per cent tariffs on most US trading partners and a separate 145 per cent levy on many products from China.

A few Chinese exporters are speeding up conversion of their dollar income into yuan on bets the worst of the tariff-led loss in the local currency may be over.

A flight from U.S. financial assets prompted by President Trump’s trade war is subsiding as the White House appears increasingly keen to strike a new trade deal with top U.S. trading partner

By Wayne Cole SYDNEY (Reuters) -Asian shares made fractional gains on Monday while the dollar dithered as confusion over U.S. trade policy showed little sign of easing, in a week packed with major economic data and mega-tech earnings.