Dollar is stable after Chinese economic data exceeded expectations

Better-than-expected Chinese growth data published on Wednesday gave Asian currencies a boost, driving the yuan to a one-week high and pressuring the dollar.

But the attack on a hospital in Gaza on Tuesday made the moves modest and kept investors awaiting the possibility of the conflict expanding.

Official data showed that the Chinese economy grew by 1.3 percent in the third quarter, up from 0.5 percent in the second quarter and exceeding market expectations of 1 percent. Industrial output also rose, and unemployment fell.

The Chinese yuan reached its highest level in a week, recording 7.2905 against the dollar, but then fell to 7.312. The Australian dollar, which is sensitive to the Chinese economy, rose 0.24 percent in the latest trading, recording 0.6381 US dollars, and the New Zealand dollar rose 0.18 percent to 0.5907 US dollars.

The dollar index, which measures the performance of the US currency against a basket of six competing currencies, recorded a slight decline to 106.19 after rising 0.53 percent yesterday, Tuesday, but it remained below the highest level in 11 months that it touched last week and reached 107.34.

The euro stabilized at $1.0571, while the pound sterling rose 0.1 percent to $1.2194 after data showed that inflation in Britain did not decline in September as expected.

The Israeli shekel remained at its lowest level since 2015, at around four to the dollar.

In the latest trading, the yen slightly increased at 149.69 to the dollar. On Wednesday, the Bank of Japan unexpectedly announced $2 billion in bond purchases to maintain downward pressure on yields.