NEW YORK: The dollar slipped against major currencies on Thursday in volatile trading, as hopes for US fiscal stimulus cheered investors and spurred them to seek higher-yielding but riskier currencies.
The Chinese yuan gained the most against the dollar, reaching a year-and-a-half high in the offshore market, as a holiday in China dried up liquidity, exaggerating the moves.
In addition, Chinese data on Wednesday showed its economic recovery was on track.
Commodity currencies such as the Australian, New Zealand, and Canadian dollars as well as the Norwegian crown also rose versus the greenback.
"The market is latching on to renewed hopes for a stimulus deal," said Erik Nelson, macro strategist, at Wells Fargo in New York.
In mid-morning trading, the euro rose 0.1% against the dollar to $1.1721.
The Australian dollar rose 0.1% against the greenback to US$0.7168. The New Zealand dollar gained 0.3% to US$0.6631. Against the Canadian dollar, the US dollar slipped 0.1% C$1.3314.
The dollar index was little changed at 93.851, after earlier falling to 93.522, its weakest level since Sept. 22.
Elsewhere, the dollar fell to 6.7306 yuan in the offshore market, its lowest since early May 2019. It was last down 0.5% at 6.754 yuan.
Comments
Comments are closed.