The dollar index was steady after data showed US retail sales rose more than expected in July, while the yuan fell to a nine-month low on Tuesday after China's central bank unexpectedly cut interest rates. U.S. retail sales rose 0.7% last month, the Commerce Department said, showing sustained demand despite the Federal Reserve raising interest rates to revive the economy. The dollar index, which measures the currency against six peers including the euro and the pound, fell to 102.800 after hitting a one-and-a-half-month high of 103.46 on Monday. It rose 0.058% to 103,200. Karl Schamotta, chief market strategist at Corpay, said, "The dollar is very stable here, but we see a lot of weakness in other currencies around the world."The dollar gained more than 0.5% against the offshore yuan to hit a nine-month high of 7.3307 as the People's Bank of China (PBOC) cut rates to spur a slow economic recovery. Underscoring these concerns, Chinese data on industrial production, retail sales, and investment released shortly after the PBOC's rate cut showed an unexpected pause."I think the strong market in the United States made the confusion of the Chinese data worse, which made the risk higher," said John Velis, head of Americas macro strategy at BNY Mellon. Market in New York. YEN watch against the yen, the US dollar hit a new nine-month high of 145.865, before falling to a session low of 145.25. It was last traded at 145.66 to the yen.
Currency bid prices at 3:00 PM (1900 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 103.1900 103.1400 +0.06% -0.290% +103.2800 +102.8000
Euro/Dollar $1.0904 $1.0905 +0.00% +1.76% +$1.0952 +$1.0896
Dollar/Yen 145.6600 145.5650 +0.06% +11.09% +145.8600 +145.1050
Euro/Yen 158.84 158.71 +0.08% +13.21% +159.3300 +158.5500
Dollar/Swiss 0.8788 0.8783 +0.07% -4.95% +0.8796 +0.8745
Sterling/Dollar $1.2705 $1.2685 +0.16% +5.06% +$1.2752 +$1.2680
Dollar/Canadian 1.3492 1.3463 +0.22% -0.42% +1.3500 +1.3440
Aussie/Dollar $0.6463 $0.6488 -0.39% -5.19% +$0.6522 +$0.6456
Euro/Swiss 0.9582 0.9578 +0.04% -3.15% +0.9596 +0.9568
Euro/Sterling 0.8580 0.8594 -0.16% -2.99% +0.8609 +0.8574
NZ $0.5961 $0.5975 -0.23% -6.12% +$0.5996 +$0.5957
Dollar/Dollar
Dollar/Norway 10.5200 10.4770 +0.33% +7.11% +10.5250 +10.4510
Euro/Norway 11.4689 11.4223 +0.41% +9.29% +11.4960 +11.4014
Dollar/Sweden 10.8584 10.7689 +0.65% +4.33% +10.8677 +10.7734
Euro/Sweden 11.8410 11.7648 +0.65% +6.20% +11.8670 +11.7565
Traders are on the lookout for any signs of intervention, after the dollar's surge above 145 last fall prompted the first yen purchases by Japanese workers in a generation."It seems that the authorities and people at the Bank of China and Japan's Ministry of Finance are getting a little comfortable with another reduction in their currency. However, they are really considering and ready to intervene if we see an irrational movement in the financial market," said Schamotta. Japan's Finance Minister Shunichi Suzuki said on Tuesday that the authorities are not aiming for an absolute level of funding when it comes to market intervention. Elsewhere, the pound rose after data showed British wages were rising at a faster pace, adding to the Bank of England's inflation concerns. The pound ended 0.16% at $ 1.2705 following data showing UK wages minus income 7.8% higher than a year before the three months ending in June. This represented the highest annual growth rate since similar records began in 2001. The UK unemployment rate, however, fell from 4.0% to 4.2%, but financial market traders still expect the Bank of England to raise rates by at least 25% basis points in the month coming, fearing that a large reward may lead to a second. impact on inflation. The euro was last unchanged at $1.09045.The Russian ruble ended early gains after Russia's central bank raised its benchmark rate from 350 basis points to 12% in an emergency meeting to try to prevent the currency from weakening more than 100 per dollar after public protests from the Kremlin. for a strong financial system.
"The dollar is holding relatively stable here, but we are seeing a lot of weakness in other currencies globally," said Karl Schamotta, chief market strategist at Corpay. "I think the strong U.S. sales data provided some relief to the negative surprise in the Chinese data, so this has pushed risk back up," said John Velis, head of Americas macro strategy at BNY Mellon Markets in New York. "It does seem that authorities both at the People's Bank of China and at the Ministry of Finance in Japan are relatively comfortable with further depreciation in their currencies. However, they're certainly looking at and certainly prepared to step in if we see a disorderly one-sided move in currency markets," said Schamotta.
