Early trade in New York: Dollar slips; offshore Chinese yuan rises

NEW YORK: The dollar fell to a one-week low on Tuesday, still weighed down by optimism over a coronavirus vaccine, as the outlook for the currency remained downbeat with the Federal Reserve and US Congress poised to do more to ease Covid-19’s economic damage.

The euro, sterling, Swiss franc and yen rose against the dollar, while the Chinese yuan hit its highest against the US currency since June 2018.

In mid-morning trading, the dollar index fell to a one-week low against a basket of major currencies, and last stood at 92.357, down 0.2%.

Data showing US retail sales rising less than expected in October had minimal dollar impact. Retail sales rose 0.3% last month, the Commerce Department said on Tuesday. Economists polled by Reuters had forecast retail sales would gain 0.5% in October.

Against the yen, the dollar fell 0.4% to 104.12, while the euro inched higher by 0.1% to $1.1868.

“Euro/dollar remains well-supported, buoyed by global optimism,” said Chris Turner, global head of markets at ING in a note to clients.

The euro was last down 0.3% versus sterling at 89.56 pence.

The offshore yuan, meanwhile, hit its highest since June 2018 against the dollar at 6.5457 as positive economic data continued to support the Chinese currency.—Reuters