LONDON—The dollar held just below a 16-month high versus the euro on Tuesday, while the yuan reached its strongest in more than five months as markets welcomed dialogue between the U.S. President and Chinese leader. U.S. President Joe Biden and Chinese leader Xi Jinping stressed their responsibility to the world to avoid conflict, in talks which gave Asian currencies a lift overnight. But support for riskier currencies ebbed somewhat as the talks did not appear to lead to any particular breakthrough. The dollar hit a five-month low against China’s offshore yuan overnight, at 6.3615, and the pair was still down around 0.1 percent on the day at 0850 GMT, at 6.3767. But the Australian dollar—seen as a liquid proxy for risk appetite—had lost its overnight gains by early European trading, down 0.1 percent on the day at $0.73425. The dollar index was a touch lower at 95.446, having rallied to …