This illustration taken on July 17, 2022 shows a US dollar bill. REUTERS/Dado Ruvic/Illustration/File Photo Obtaining license rights
TOKYO, Sept 15 (Reuters) – The dollar held steady in Asian markets on Friday, pulling back slightly from overnight gains against its peers as the yuan strengthened on economic data that outperformed some Chinese markets. .
The dollar soars overnight, with an expected 0.2% rise in August as U.S. retail sales get a boost from higher gas prices as market participants react to the European Central Bank’s 25 basis point hike. It rose by 0.6%.
The U.S. dollar index was slightly lower last time out at 105.32, but still close to Thursday’s six-month high of 105.43.
The euro hovered around $1.0632 against the dollar, Thursday’s multi-month low.
The yuan, Australian dollar and New Zealand dollar strengthened in a rare rally in Asia in the morning after a series of economic data released by China beat expectations in some key indicators.
Following the announcement, the offshore yuan rose slightly against the dollar to 7.2918 yuan.
The yuan fell on Thursday after the People’s Bank of China announced it would cut banks’ reserve requirements by 25 basis points for the second time this year.
The measures are aimed at keeping liquidity plentiful and supporting the initial economic recovery, but could worsen an already weak renminbi depreciation as domestic interest rates fall further.
National Bank of Australia senior currency strategist Rodrigo Catril said the People’s Bank was providing stimulus “gradually” but the economy was still suffering from a lack of consumer confidence.
“We think it’s a little too early to see any green shoots sprouting from any stimulus that’s been introduced.”
The Australian dollar, which represents China’s growth, rose nearly 0.3% to $0.6443, and the New Zealand dollar rose 0.2% to $0.5912.
Elsewhere, the euro hovered around $1.0641 against the dollar, near a six-month low of $1.0632, after the ECB raised interest rates by another 25 basis points at Thursday’s monetary policy meeting.
“Markets appear to view yesterday’s ECB rate hike of 25 basis points as a dovish rate hike… which caused the euro and European yields to fall sharply,” Mizuho Bank analysts said in a note.
The pound is also trading at around $1.2408 against the dollar, the lowest in three months.
In the morning Asian time, the yen was sticky at around 147.41 yen to the dollar.
With the yen trading near its lowest level in 10 months, market participants are closely monitoring the possibility of intervention by the Japanese authorities.
Simon Harvey, head of currency analysis at the brokerage, said: “We are keeping a close eye on the dollar-yen at the $150 level, and given the market’s reluctance to go that high. I don’t think they are doing that.” Monex Europe.
Report by Brigid Riley. Additional reporting by Indradip Ghosh. Edited by Lincoln Feast and Sri Navaratnam.
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