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The dollar fell as growth-linked currencies rose after the Chinese yuan climbed to a one-week high on news that US President Joe Biden and Chinese leader Xi Jinping spoke for the first time in seven months.
The White House said in a statement that Biden and Xi had a “broad strategic discussion” that covered areas where interests and values diverged. A senior US official told reporters that the phone call between the two leaders focused on economic issues, climate change, and COVID-19.
The yuan rose 0.2 percent against the dollar after the news, moving away from the 6.50 yuan per dollar level to 6.4387, its highest level since Sept. 3.
The Australian dollar rose 0.35 percent to $0.7392 and is heading for a weekly decline of 0.7 percent. The yuan’s move also boosted the New Zealand dollar, which rose nearly 0.5 percent to $0.7141.
And both currencies tend to benefit when risk sentiment is positive.
The Japanese yen fell 0.2 percent against the dollar to 109.97 yen, while still moving in the middle of its range over the past two months.
The dollar index, which measures the performance of the US currency against six other major currencies, fell 0.1 percent on the day to 92.421, but it is still on its way to a weekly rise of 0.35 percent.
The euro rose 0.1 percent to $1.1838 today and is on track to fall 0.35 percent for the week.
