FX-Dollar strengthens against all currencies
2022.11.28 00:12
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FX-Dollar strengthens against all currencies
Budrigannews.com – On Monday, fears of a slowdown in China’s economy stoked demand for safe havens, while the dollar rose as China’s civil unrest grew worse and its strict anti-COVID policy shook sentiment.
Decreased by 0.2 percent to 7.1997 against the dollar, making it the lowest level in more than two weeks.Although initial losses were reduced for both currencies, their prospects remained dim.
Over the weekend, Chinese protesters gathered in a number of major cities amid growing public outrage over the government’s stringent COVID measures.A deadly fire in Ürümqi was caused by lockdown measures, which sparked a nationwide uprising.
China’s economic growth is already struggling as a result of the country’s stringent COVID measures implemented this year, and the current unrest may further impede it.China is also dealing with an unprecedented rise in the number of COVID-19 cases per day.
The currencies of nations with a significant trade relationship with China fared poorly.The and each fell 0.2%.
The fell 0.9% as a result of weaker-than-expected data as well.
In response to rising demand for safe havens for the dollar, the and gained 0.4% each to reach over 106.On Monday, worries about rising Chinese demand sent commodity prices plummeting around the world.
However, rising expectations regarding the Federal Reserve’s upcoming actions slowed dollar gains.Asian currencies have benefited from this scenario, which has resulted in substantial gains over the past two weeks.
Despite the fact that inflation is still significantly above the Fed’s target, the location of the U.S. interest rate peak is still unknown to the market.Gains in Asian currencies may be constrained in the near future by this sentiment.
The Asian currency gained 0.4% on Monday, benefiting from a mix of demand for safe havens and bargains.
Some people think that the Bank of Japan will be forced to tighten its ultra-loose monetary policy because of recent economic weakness.
Due to India’s dependence on imports for the majority of its crude requirements, losses in the were muted by a decline in oil prices.
After data showed that the country’s and unexpectedly decreased in October, the in Southeast Asia decreased by 0.3 percent.However, the nation has also significantly contracted.
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