Dollar hits one-month low on U.S. stimulus hopes, yuan rises
The dollar fell to a one-month low on Wednesday as optimistic investors about a U.S. stimulus before the election turned to risk currencies. The yuan surged to a two-year high on China’s strong economic recovery.
U.S. President Donald Trump said that he was willing to accept a big stimulus deal despite opposition from Republicans. That raised hopes for a breakthrough in the stimulus talks and lifted the 10-year Treasury yields to a four-month high.
The dollar index was down 0.1% in Asian trade. The Aussie and the kiwi both rose 0.4%, while the euro rose to a one-month high of $1.1844.
Chinese data showed that the country’s economic growth is accelerating. The yuan climbed 7.6% on the dollar since May and was up 0.2% to 6.6532 on Wednesday. The Japanese yen rose 0.1%.