The dollar was holding steady against a basket of currencies on Thursday, as strong Chinese export figures and a move by Beijing to limit a drop in investors’ nerves.
Data show that Chinese exports rose 3.3% in July from a year earlier, while analysts had demanded a 2% decline, and policymakers fixed the yuan‘s daily value at a level stronger than they had expected.
Manuel Oliveri, an FX strategist at Credit Agricole in London, said; “Recent comments by Chinese officials suggest that they want to stabilize their currency, otherwise a sharp drop in currency could spur capital outflows,”
“The other factor contributing to the sense of risk is an increasing pace of central bank cuts.”
The US Federal Reserve in September is still heavily matured in the bond markets, despite an overnight bounce in global markets.
These expectations forced the dollar to weaken against both the euro and the yen.
“The yen’s appreciation against the dollar may have slowed now, but it stands to keep profits in the longer term,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
The New Zealand dollar rose 0.23% to 0.6458, after falling to a three-year low of 0.6378 on Wednesday following the rate cut. forex.com
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