Dollar falls as sentiment for yuan grows

The dollar fell against its peers on Thursday as a rally in risky assets such as commodities and global equities overshadowed safe-haven demand.

The Chinese yuan rose to a four-month high of 6.9875 against the dollar. Investors shrugged off the diplomatic tensions between the United States and China as the latter’s economy continued to improve and as its technology sector attracted investors.

The dollar stood at 0.9381 on the Swiss franc and neared a three-week low of 1.2613 on the pound. It steadied at 107.33 on the yen.

The euro rose to $1.1339, while the British pound steadied at 89.91 pence per euro.

Analysts say that some currency pairs could remain in tight ranges, while the dollar could fall deeper as the market sentiment continues to favor risky bets on long-term economic growth.

The Australian dollar stood at $0.6978 and the New Zealand dollar at $0.6573.