The dollar fell overall today after a challenging week, dipping below seven yuan as sentiment improved towards high-risk assets following signs of China easing some Covid-19 restrictions. The dollar declined to below seven yuan in overseas trading, while the yuan surged approximately 1.4 percent in domestic transactions to 6.9507 per dollar this morning, marking its strongest level since September 13.
The dollar index, which measures the performance of the U.S. currency against six major currencies including the yen and euro, dropped 0.18 percent to 104.28, the lowest level since June 28. Investors' focus will be on U.S. consumer price inflation data set to be released on December 13, a day before the Federal Reserve concludes its two-day policy meeting. The U.S. central bank is expected to raise interest rates by an additional 50 basis points at the meeting.
Meanwhile, the Japanese yen fell 0.04 percent against the dollar to 134.37 per dollar, after rising 3.5 percent last week, moving away from its lowest level recorded in October, which was 151.94. The euro increased 0.38 percent to 1.0578 dollars, following a gain of 1.3 percent last week and earlier touching its highest level in over five months at 1.05835 dollars. The British pound rose to 1.23450 dollars, its best level since June 17, with the latest trades at 1.2339 dollars, up 0.42 percent. The Australian dollar increased 0.75 percent to 0.684 dollars, while the New Zealand dollar rose 0.31 percent to 0.643 dollars.
