The dollar falls on the hopes of trade talks between the United States and China

NEW YORK (Reuters) – The dollar fell against a basket of other currencies on Wednesday as investors reduced holdings of the greenback after a report by US officials seeking to revive trade talks with China.

The US currency was also put under pressure by the rebound in the euro and British pound after pro-Brexit MPs Theresa May publicly pledged to support her despite her disagreement with her Brexit proposals.

"We have a lot of Brexit titles in recent days that are conciliators," said Paresh Upadhyaya, director of monetary strategy at Amundi Pioneer Investments in Boston. "The dollar has also come under pressure from the announcement of an American proposal to revive trade negotiations with China."

Senior US officials, led by Treasury Secretary Steven Mnuchin, have sent invitations to their counterparts in Beijing to propose a new round of bilateral trade talks, the Wall Street Journal reported on Wednesday.

The trade dispute between the United States and China has shaken the CNH = EBS yuan and emerging currencies, with US President Donald Trump threatening to impose more tariffs on Chinese imports in an attempt to resolve a record trade deficit with China.

An index that tracks the greenback against the euro, the yen, the pound sterling and three other currencies .DXY fell 0.49% to 94,787.

Sterling GBP = D3 was up 0.18 percent at

$ 1.3056, not far from a five-week high at $ 1.3087 set Tuesday.

The euro was up 0.26% to 1.165050 EUR = EBS and was little changed to 89.05 EUR in EURGBP = D4.

BCE, BOE MEETINGS

The euro has won a meeting of the European Central Bank. The traders have sought to pull out of some bearish bets on the single currency, which fell earlier Wednesday on reports that ECB policymakers would reduce their growth forecasts at their meeting on Thursday, analysts said.

The ECB and Bank of England, which will also hold a policy meeting on Thursday, should leave their interest rates unchanged.

The weak dollar helped emerging markets recover from their previous losses when the Indian rupee INR = hit a record low at US $ 72.91.

Earlier Wednesday, the US Department of Labor said that the producer price index fell unexpectedly by 0.1% in August, marking its first drop in 1 1/2 year.

The Federal Reserve's latest Beige Book showed that the US economy has been growing at a moderate pace in recent weeks, even as businesses were concerned about international trade tensions.

Fed policymakers will greatly increase short-term borrowing costs at their next meeting on 25-26 September.

(Graph: world exchange rates in 2018 tmsnrt.rs/2egbfVh)