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The dollar fell against its rival currencies and is heading towards recording the second weekly decline in a row, due to news that the debt-laden Chinese Evergrande Group avoided a default that supported the appetite for high-risk assets.
Concerns about the real estate developer group, whose debt is equivalent to two percent of China’s gross domestic product, prompted investors to hold safe-haven currencies such as the US dollar and government debt.
The dollar index fell 0.1% to 93.61 points, putting it on a path towards recording a decline for the second week.
The Australian dollar hit $0.7498, dropping from a 3-month high hit on Thursday after the Reserve Bank of Australia’s (central bank) move to halt bond selling outweighed the support the Chinese currency received from the Evergrande news, as well as the halt in energy prices.
The euro was little changed and recorded 1.1627 dollars, while the yen moved near its lowest level in several years, as the dollar reached 114.01 yen, compared to 114.69 earlier in the week, the lowest level in 4 years.
