Home Forex News Dollar weakens, yuan rises; China’s COVID controls in focus

Dollar weakens, yuan rises; China’s COVID controls in focus


Dollar weakens, yuan rises; China’s COVID controls in focus By Investing.com

Breaking News


Forex 51 minutes ago (Nov 29, 2022 02:58AM ET)

(C) Reuters.

By Peter Nurse

Investing.com – The U.S. dollar weakened in early European trade Tuesday and the Chinese yuan gained on hopes the Chinese government was set to ease its tight COVID-related mobility restrictions, boosting risk appetite.

At 03:05 ET (08:05 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, fell 0.4% to 106.165, after rising 0.5% overnight.

China reported on Monday its first drop in the number of daily infections in more than a week. This followed civil unrest over the weekend as frustrations over the country’s prolonged mobility restrictions boiled over.

The country’s National Health Commission on Tuesday said it will present measures to accelerate vaccination of the over 80s, a vulnerable age bracket in which over one-third is still unprotected.

The move is the first clear signal of official intent since the wave of anti-government protests, and traders have started to speculate that this is the first stage of the Chinese government scaling back its anti-COVID policies.

USD/CNY fell 0.7% to 7.1592, retreating from the previous session’s two-week high after the protests and record-high COVID infections had prompted concerns about the growth potential of the world’s second-largest economy.

The U.S. dollar had traded higher Monday, boosted not only by its status as a safe haven, but also by more hawkish talk from Federal Reserve policymakers.

Richmond Federal Reserve Bank President Thomas Barkin said on Monday he supports moving to smaller interest-rate hikes in the central bank’s fight to bring down too-high inflation, but this could mean a higher ultimate peak.

“I’m very supportive of the path that is slower, probably longer and potentially higher,” Barkin said in an interview with Bloomberg TV. “You obviously don’t want to do damage you don’t have to do. But the focus is on inflation and getting inflation under control.”

Fed Chair Jerome Powell is also scheduled to discuss the economic outlook on Wednesday, ahead of Friday’s crucial official monthly jobs report.

EUR/USD rose 0.5% to 1.0387, with the focus on inflation in the Eurozone.

Spanish inflation rose 6.8% on the year in November, a drop of 0.1% on the month, below last month’s 7.3%. German CPI numbers are also due for release later in the session, ahead of Wednesday’s Eurozone CPI data.

ECB President Christine Lagarde said on Monday, in a speech to the European Parliament, that the region’s inflation has not peaked and it risks turning out even higher than currently expected.

GBP/USD rose 0.5% to 1.2022, the risk-sensitive AUD/USD jumped 1% to 0.6716, while USD/JPY fell 0.5% to 138.25, even as retail sales data for October missed market expectations.

Dollar weakens, yuan rises; China’s COVID controls in focus

EUR/USD remains hesitant ahead of key obstacle, ING fears a drop to 1.02 tomorrowBy Investing.com – Nov 29, 2022

Investing.com – The EUR/USD pair displayed high volatility yesterday, climbing to a high of 1.0497, the highest since June 29, before correcting to a low of 1.0331 last night and…

Asia FX shrugs off hawkish Fedspeak, China in focusBy Investing.com – Nov 28, 2022

By Ambar Warrick
Investing.com– Most Asian currencies recovered sharply from recent losses on Tuesday despite hawkish signals from the Federal Reserve, with focus remaining…

Yuan gains on hopes of COVID policy easing; dollar slidesBy Reuters – Nov 28, 2022

By Harish Sridharan (Reuters) – The yuan jumped on Tuesday ahead of a COVID-19 press briefing in China later in the day that is spurring hopes of a potential easing in the…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News