Dollar Giving up Its Gains With Appetite For Riskier Currencies

The dollar fell Thursday, October 1, to its lowest level in 9 days, as strong US data and hopes about a fiscal stimulus boosted investor confidence enough to take in more risky currencies.

The Chinese yuan rose against the dollar and reached its highest level in a year and a half in the foreign market as a holiday in China led to a lack of liquidity and strengthened currency movements. In addition, Chinese data on Wednesday revealed that Beijing’s economic recovery is on track. The Australian dollar and the Norwegian krone also rose against the dollar.

ِAdministration of US President Trump has proposed a package of stimulus to the House of Representatives worth more than $ 1.5 trillion, and hopes have increased that the Republican and Democratic parties will reach a compromise.

In light of strong labour market data and the manufacturing sector in the United States, sentiment in the market pushed the dollar down to 93.61 against a basket of currencies, its lowest level since September 22. The Euro at $ 1.1735, up 0.1% during the day.

The Australian dollar rose 0.3% to $ 0.7186 after touching 0.7197 earlier, its highest since September 22. The Chinese yuan rose 0.6% to 6.7457 per dollar, after increasing to 6.7330, its highest level since the beginning of May 2019.

The pound fell 0.3% against the dollar to $ 1.2881, and it also fell 0.2% against the euro.