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Dollar maintains, extends gains in Asian trading on Monday
(MENAFN) The dollar held onto its gains and extended them in Asian trading on Monday, driven by tight liquidity due to a holiday in Japan, which brought attention to disappointing Chinese stimulus announcements over the weekend. The euro slipped 0.13 percent to USD1.0922, while the pound remained stable but fell 0.2 percent. The dollar also rose 0.13 percent against the Japanese yen to reach 149.2750.
The dollar index was just above 103, close to last week's peak, its highest since mid-August, as traders scaled back expectations for significant interest rate cuts from the Federal Reserve this year. The Chinese yuan fell 0.2 percent against the dollar, and the Australian dollar declined 0.16 percent to USD0.67385.
China announced plans to significantly increase government debt issuance to support low-income individuals, stabilize the property market, and strengthen state banks' capital in a bid to revive its faltering economic growth. Finance Minister Lan Phu An hinted at more "counter-cyclical measures" to come, though specifics about the fiscal stimulus were not disclosed.
Since September 24, the Chinese yuan has depreciated 0.7 percent against the dollar after the People's Bank of China initiated strong stimulus measures. Currency movements were muted last week, with the yen and euro both down about 0.3 percent and the pound dropping 0.4 percent. U.S. data showing slightly higher consumer prices and rising jobless claims have kept alive expectations for a 25-basis-point rate cut from the Fed in the upcoming months. Investors are also anticipating U.S. retail sales and jobless claims data this Thursday.
The dollar index was just above 103, close to last week's peak, its highest since mid-August, as traders scaled back expectations for significant interest rate cuts from the Federal Reserve this year. The Chinese yuan fell 0.2 percent against the dollar, and the Australian dollar declined 0.16 percent to USD0.67385.
China announced plans to significantly increase government debt issuance to support low-income individuals, stabilize the property market, and strengthen state banks' capital in a bid to revive its faltering economic growth. Finance Minister Lan Phu An hinted at more "counter-cyclical measures" to come, though specifics about the fiscal stimulus were not disclosed.
Since September 24, the Chinese yuan has depreciated 0.7 percent against the dollar after the People's Bank of China initiated strong stimulus measures. Currency movements were muted last week, with the yen and euro both down about 0.3 percent and the pound dropping 0.4 percent. U.S. data showing slightly higher consumer prices and rising jobless claims have kept alive expectations for a 25-basis-point rate cut from the Fed in the upcoming months. Investors are also anticipating U.S. retail sales and jobless claims data this Thursday.
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