News

Aussie falls, while yuan hits 5-month high against dollar

Risk-sensitive currencies, including the Australian dollar declined on Thursday, whereas the safe-haven Japanese yen surged as worries about rising inflation and less loose central bank policy dented risk sentiment.

According to Edward Moya, senior market analyst for the Americas at OANDA in New York, it is driven by concerns we’re getting closer to Fed tapering announcement.

Moya also added that earnings season has only supported the argument that inflation is persisting. He announced that China’s slowdown and the global energy crisis are also headwinds for risk appetite.

The Chinese yuan today hit an exchange rate of 6.4 units versus the dollar, its highest level against the greenback since May.

This shows a rise in the value of the Chinese currency of 4.4% year-on-year and 2.7% compared to its record this year, at the end of March.

Analysts at the investment bank China International Capital Corporation (CICC) announced that the main reason for the yuan’s appreciation is the strength of exports, which in September increased more than anticipated.

Stocks opened lower as IBM and Tesla dropped after their quarterly results. Investors are waiting for more reports to see the impact of supply chain disruption and labor shortages on companies.

The dollar index, measuring the greenback against its peers, dropped 0.03% to 93.57. It had hit a one-year peak of 94.56 last week on mounting bets that the Fed will raise rates earlier than previously thought to quell increasing price pressures.

The risk-sensitive Australian dollar dipped by 0.33% to settle at $0.7491 after touching $0.7547 overnight, the level unseen since July 6.

Its New Zealand counterpart, which has been increased since New Zealand on Monday recorded the highest inflation reading in over a decade, slipped 0.41% to $0.7171. In the previous session, it rose to $0.7219 overnight, the highest level since June 8.

The greenback plunged 0.52% against the safe-haven yen to 113.73. It had reached a four-year peak of 114.67 versus the yen on Wednesday.

The British pound slipped 0.09% against the dollar to $1.3810. Meanwhile, the euro versus the greenback dropped 0.05% to $1.1644.

The largest digital currency, Bitcoin, was last at $65,413 after hitting a record peak of $67,017 on Wednesday. Remarkably, demand for Bitcoin has boosted after the launch of the first U.S. bitcoin futures exchange-traded fund.

Support

Platform

Spread

Trading Instrument

Subscribe to our newsletter

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News