USD Exchange Rate Skids on Boosted Risk Appetite

On Friday, the USD exchange rate skidded as the market sentiment tilted towards riskier assets. 

Accordingly, the US dollar index, which tracks the greenback against a basket of currencies, fluctuated 0.15% to $93.63. 

Subsequently, it petered out its gain of 0.19% to $93.74 yesterday. 

Moreover, risk appetite boosted as the embattled China Evergrande has settled an interest on a US dollar bond, averting a formal default.

Consequently, traders still assess if the current fall of the USD exchange rate would move further. 

Meanwhile, the benchmark 10-year Treasury yields touched 1.69%, a slight decline from its multi-month high of 1.70%.

Still, market participants widely expect the Federal Reserve to wind down its massive bond-buying program by November. 

On the economic data front, the American jobless claim diminished to 290,000 from the previous number of 296,000. 

Also, it came in lower than the forecasted figure of 300,000, supporting the USD exchange rate. 

Consequently, existing home sales strengthened to $6.29 million from the August figure of $5.88 million. 

Then, it surpassed the analysts’ estimate of $6.09 million, which should be taken bullish for the greenback.

Moreover, traders kept an eye close to the speech of Fed Chair Jerome Powell today. 

Meanwhile, the USD to JPY exchange rate shed 0.03% to $113.93 as the yen wobbled within sight of its multi-year lows.

At the same time, the USD to CNY exchange rate edged down 0.13% to $6.39 following its Thursday plunge. 

Conversely, the AUD to USD exchange rate elevated 0.48% to $0.75 as the Reserve Bank of Australia halted a bond sell-off.

Additionally, the RBA defended its yield target by spending about $750.00 million to dampen the aggressive sell-off.

GBP to USD Exchange Rate Rise

Furthermore, the GBP to USD exchange rate improved despite downbeat economic figures. 

Accordingly, the Pound sterling climbed 0.14% to $1.38, opposing its decrease of 0.24% yesterday. 

Then, British retail sales dwindled 0.20% month-on-month from the prior rate of 0.60%. It also dropped from the projected 0.50%. 

On a yearly basis, it slumped to -1.30% from -0.20%, a significant dive from the expected -0.40%. 

Consequently, the EUR to USD exchange rate rose 0.10% to $1.16, a hike from its Thursday drop of 0.24%. 

The jump of the German manufacturing purchasing managers index (PMI) supported the upward movement of the euro. 

Subsequently, it strengthened to 58.20 points from the estimated number of 56.50.

Inversely, the USD to CAD exchange rate pared 0.19% to $1.23. 

Similarly, the USD to CHF exchange rate dwindled 0.11% to $0.92.