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The dollar fell against a number of other currencies on Tuesday, and lost some of the gains it recorded at the end of the previous session, amid growing concerns due to the restrictions to combat the Corona virus in China.
The dollar index, which measures the greenback against a basket of currencies, fell 0.4% to 106.23, after rising 0.5% at the end of the previous session.
The greenback retained marginal support from hawkish comments from Federal Reserve officials on Monday night.
The market is awaiting Federal Reserve Chairman Jerome Powell’s statements on Wednesday, looking for any new signs of further monetary tightening. It also awaits key US jobs data for November, which is due on Friday. The US central bank is expected to raise interest rates by an additional 50 basis points when it meets on December 13-14.
The offshore yuan rose 1.2 percent to 7.1607 per dollar after a statement from the Chinese government announcing that a press conference of experts from the National Health Commission and two other disease control and prevention agencies would be held on Tuesday regarding the coronavirus, which is likely to see the announcement of easing corona restrictions.
The yuan in China also rose 0.66 percent to 7.1594 per dollar.
And the Japanese yen recorded an increase in the latest trading by 0.3, to reach 138.525 per dollar.
The Australian dollar also rose 0.8% to $0.6708. The New Zealand dollar also rose 0.9 percent to $0.6214.
And strengthened the pound sterling against the dollar, up 0.4 percent to 1.2007 dollars.
The euro also rose 0.4 percent to $1.0382, after hitting a five-month high of $1.0497 at the close of the previous session.
Inflation data in the euro zone for November is due on Wednesday, and economists polled by Reuters expected inflation to reach 10.4 percent year-on-year. Before that, inflation data from Spain and Germany are expected later on Tuesday.
