Risk appetite in global markets was up, after the US Food and Drug Administration granted full approval to the COVID-19 vaccine developed by Pfizer and BioNTech
The primary source for investor concern is the global prominence of the Delta coronavirus variant which is set to weigh on European manufacturing survey data due shortly
The dollar index, which measures the currency against six peers, was little changed at 93.468 from Friday, when it climbed as high as 93.734 for the first time since Nov. 4
The greenback was also boosted by expectations the Federal Reserve could still start to taper stimulus this year, even with COVID-19 infections surging this month in the United States
The dollar index, which measures the U.S. currency against six rivals, climbed as high as 93.502, its strongest since Nov. 5, before trading 0.26% higher at 93.464
Expectations of an end to the largesse that helped drive a global equity rally for more than a year added to the already sombre mood on trading floors caused by the fast-spreading Covid Delta variant, which is forcing a re-evaluation of the economic recovery as fresh curbs are put in place
Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4765 per dollar, 48 pips or 0.07% weaker than the previous fix of 6.4717
The dollar eased to 109.24 yen, having lost about 1% over the past two sessions while the euro slipped to as low as 128.50 yen, touching its lowest level since late March
Different easing approaches could have different impact on the financial markets, and monetary easing could put downside pressure on the yuan in the short term
Many analysts said the interest rate cut was an adjustment to monetary policy objectives, which was inconsistent with the policy tone, hence chances of such a move were very low
Sun maintained his forecast for the yuan to trade in a range of 6.45 to 6.49 per dollar for the near time, with some upside risks to the Chinese currency