US Dollar Rising And Yuan is Falling, After China Watches The Currency’s Rise

The dollar rose from its lowest level in three weeks on Tuesday, as traders in the market returned to buying it, especially against the counterpart currencies of higher risk, after it appeared that the Chinese authorities are seeking to curb the gains in the yuan that recorded recently.

The Australian dollar lost about half a%, as it received an additional blow from media reports that the reputation had stopped importing coal from the country as relations deteriorated between them.

But risk appetite in general is supported by the hope that former Vice President Joe Biden will beat President Donald Trump in the US presidential election on November 3 and pay a major stimulus to support the economy that has hit the coronavirus pandemic.

The dollar index rose 0.1% to 93.190, in an effort to extend its recovery from its lowest level in nearly three weeks at 92.997 reached on Friday, while the euro fell 0.17% to 1.1794 dollars.

The Chinese yuan fell 0.1% to 6.7500 per dollar after the central bank identified a weaker-than-expected midpoint, erasing the impact of any support from strong Chinese trade data.

The Mexican peso fell 0.4% to 21.270 per dollar, while the Canadian dollar fell 0.1% to 1.3124 per dollar.

Biden’s election victory is seen as a negative for the dollar as well, in part because of his pledge to increase corporate taxes, which will reduce investment returns in the United States and put pressure on the dollar even against safe-haven currencies like the yen and the Swiss franc.

The yen witnessed a limited move at 105.43 per dollar, while the Swiss franc traded at 0.9102 per dollar, near its highest level in three weeks.

The pound traded above the important level of $ 1.30, as hopes for Brexit outweighed concerns about pressures on the economy due to new restrictions to combat the Corona virus announced by Prime Minister Boris Johnson.

The sterling settled near its strongest level in two weeks against the euro, which traded at 0.9043 pounds.

On the other hand, the Australian dollar fell 0.6% to $ 0.7165, undermined by media reports that China has stopped receiving shipments of Australian coal.