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Saturday 21 July 2018
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Dollar Flat, Yuan Climbs With Focus on UK Turmoil, Trade War on Back Burner

Forex3 hours ago (Jul 10, 2018 12:42AM ET)

© Reuters. The Chinese yuan continued to rebound from multi-month lows

Investing.com – The Chinese yuan continued to rebound from multi-month lows while the U.S. dollar remained flat in morning trade in Asia Tuesday.

The U.S. Dollar Index, which tracks the greenback against a basket of six major currencies, gained a very little ground in morning trade in Asia, climbing just 0.02% to 93.82 at 12:30AM ET (04:30 GMT).

The dollar had rebounded overnight from its lowest point in more than three weeks, spurred by flight from the UK pound sterling. Political turmoil in the UK caused by the resignation of Foreign Secretary Boris Johnson helped shore up the greenback.

Meanwhile, the People’s Bank of China set the reference rate for the yuan at 6.6259 on Tuesday morning, stronger than the 6.6393 it set on Monday.

The USD/CNY pair was down 0.16% at 6.6052 as the Chinese currency continued to inch away from an 11-month low of 6.7344 reached on July 3.

China’s foreign exchange reserves unexpectedly rose $1.51 billion in June to $3.112 trillion, despite expectations of a drop of $10.6 billion.

At least for today, the markets seem to be putting the trade dispute between the U.S. and China in the back burner, choosing instead to focus on economic data and the turmoil in the UK.

In Japan, the USD/JPY pair was up 0.21% to 111.06, as the yen continued to lose ground to the greenback and touched its lowest point since May 21.

Japan’s current account surplus narrowed to JPY1.85 billion, according to data released Monday, easily beating estimates of JPY1.18 billion.

Elsewhere, The AUD/USD pair also rose 0.17% to $0.7480, as it continued to climb past its highest level since mid-June.

Dollar Flat, Yuan Climbs With Focus on UK Turmoil, Trade War on Back Burner

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