Forex

The United States Dollar, China’s Yuan, and Other News

On Thursday, the United States Senate unanimously approved some legislation. The purpose of this legislation was to penalize banks doing business with Chinese officials who implement Beijing’s new national security law for Hong Kong. It thus raises the chances of further friction between the world’s two largest economies.

The yuan was little changed at 7.0732 per dollar in the offshore market.

On Friday, the Australian dollar held steady at $0.6917. This was before data expected to show a sharp rebound in retail sales in May.

The New Zealand dollar traded at $0.6509 across the Tasman Sea.

The resurgence of coronavirus in the United States discouraged some investors from taking on excessive risks. So, on Friday, the United States dollar hemmed into a narrow range. Furthermore, safe-haven flows supported that move.

The yuan was stable before the release of data on China’s service sector in foreign trade. Nonetheless, investors might avoid taking prominent positions. That is because of worries concerning the diplomatic friction between Washington and Beijing over civil liberties in Hong Kong.

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The United States and Other Currencies

On Thursday, the data showed that the United States economy added more jobs than expected in June. Nonetheless, the reaction in the currency market has been muted. That is because another spike in coronavirus infections threatens once again to put the breaks on economic activity.

Junichi Ishikawa is a senior forex-exchange strategist at IG Securities. He said that new infections in The United States had been on an uptrend since June.

The market is now leaning more toward buying the dollar. This is mostly against te emerging currencies. Moreover, the reason for this is that the dollar is the safest asset around.

On Friday, against the euro, the United States dollar was quoted at $1.2395.

On Friday, after three straight days of gains, the dollar held steady at 0.9469 Swiss Francs.

At last notice, the British pound traded hands at $1.2471.

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