Fri, March 29, 2024

The Chinese Yuan rose slightly against the U.S. Dollar

The Chinese Yuan rose slightly against the U.S. Dollar

The Chinese Yuan rose slightly after the dollar fell again. The yuan traded at 7.0131 per dollar in the offshore market, as bulls awaited key Chinese economic data. China planned to release several important economic indicators that should reveal the scale of damage caused by the coronavirus late on Monday.

Meanwhile, the Reserve Bank of Australia added $5.9 billion to the banking system through market repo operations, while the Reserve Bank of New Zealand made a cut of 75 basis points to its rates. The Australian dollar dropped by 0.38% to $0.6164, with the New Zealand dollar declining by 0.2% to $0.6045 during the last days.

What caused the U.S. dollar’s fall? 

The dollar plummeted down against several other currencies on Monday after the U.S. Federal Reserve made another surprise interest rate cut. It lowered by 1.5% to 106.35 yen early on Monday in reaction to the Fed’s move.

Against the euro, the greenback fell by 0.3% to $1.1153, and it slid by 0.3% to 0.9507 against the Swiss franc. The currency also declined by 0.9% to $1.2405 per British pound.

Six central banks cut pricing on their swap lines recently around the globe. The Fed cut rates on Sunday to a target range of 0% to 0.25%, saying that it would expand its balance sheet by at least $700 billion in the coming weeks. It wanted to make the process of providing dollars to financial institutions facing stress in credit markets easier.

The recent drop is a mildly negative reaction for the U.S. dollar – noted Ray Attrill, head of FX strategy at National Australia Bank in Sydney. He also added that the Fed moved a little sooner and a little more aggressively than some analysts thought.

According to the expert, this step cannot prevent economic fallout due to social distancing. That will require investments from the government and some fiscal spending.

YOU MAY ALSO LIKE

Ford

Quick Look: CVA Family Office LLC snaps up 4,559 shares of Ford

The government aspires to make Portugal Europe's top producer of prime lithium for electric car batteries.

Quick Look: Atlas Lithium signs investment and offtake agreements with Mitsui. Mitsui

Stocks and various factors, Baltimore

Quick Look: The Francis Scott Key Bridge in Baltimore collapsed after a

COMMENTS

Leave a Comment

Your email address will not be published.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

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in