The yuan held near a two-year high against the dollar in offshore trade on Tuesday, on signs of China's robust economic recovery while the Australian dollar slipped to a three-week low as the central bank looks set to enhance monetary easing.
Broader risk sentiment was curbed by caution ahead of a Tuesday deadline to reach agreement on a U.S. coronavirus aid package as well as the Nov. 3 U.S. presidential election.
China's offshore yuan rose as high as 6.6695 per dollar on Monday, surpassing its 2019 peak and hitting its strongest level since July 2018
The yuan's gain came as data on Monday showing a recovery in China's consumer sector helped boost not only the Chinese currency but others, including the euro.
On the other hand, the Australian dollar dropped 0.3% to $0.7045, hitting a three-week low of $0.7038 on increasing expectations of monetary easing next month by the country's central bank.
Allen, and the market, expect the cash rate to be cut to 0.1% from the current 0.25% and the central bank to extend bond buying out to the five- to 10-year sector of the yield curve.
Broader confidence was also dented by a fall in U.S. share prices as investors grew cautious about prospects of a stimulus deal in Washington.
Markets probably still think a deal before the election is unlikely.
However, investors still think British and European negotiators might be able to salvage post-Brexit trade talks to prevent disruptions that a no-deal finale to the five-year Brexit drama would cause.
04 Dec 2020 04:48 PM
India's benchmark stock index retreated to close above 45,000 points for the first time ever as the RBI upgraded its GDP target for the current fiscal year and kept interest rates steady amid high inflation.
04 Dec 2020 03:57 PM
Indian rupee stayed higher tracking uptick in regional peers
04 Dec 2020 11:51 AM
Indian equities touched record highs after the RBI kept interest rates steady due to high inflation, and retained its accommodative monetary policy stance
04 Dec 2020 11:35 AM
Yuan rose to a fresh 2 1/2-year high against a weakening dollar, despite fresh signs of tension between the US and Chinese economy.
04 Dec 2020 11:01 AM
Gold prices strengthened and are on track for their first weekly gain in a month, as growing optimism over a U.S. fiscal stimulus deal pressured the dollar and boosted Gold appeal as an inflation hedge.
04 Dec 2020 10:44 AM
Indian rupee was trading at 73.73/73.74 compared to 73.90/ 73.91 in the previous session, as the Dollar Index continued to decline in anticipation of the U.S. monthly non-farm payrolls report.