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HomeBUSINESSDollar falls as China’s yuan leads
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Dollar falls as China’s yuan leads

The dollar fell against most currencies on Thursday as a rally in riskier assets such as global equities and commodities put a dent in safe-haven demand for the U.S. currency.

China’s yuan rose to a four-month high against the greenback, extending recent gains as investors of all stripes increase positions in Chinese stocks due to growing signs of a recovery in the world’s second-largest economy.

Lingering worries about the spread of the coronavirus could keep some currency pairs in a tight range, but the dollar’s losses are gradually increasing as sentiment favours riskier bets on long-term economic growth.

“Rising stocks and a dip in Treasury yields are slight negatives for the dollar, but the market can’t move too far because we still have to worry about the virus,’’ said Minori Uchida, Head of Global Market Research at MUFG Bank.

A lot of major U.S. economic data have been positive, so this will be less of a trading factor going forward.

“People are looking for cues from stocks, yields and hedging costs.’’

Against the euro, the dollar fell 0.3 per cent to $1.1365, reaching a one-month low.

-NAN

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