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[Economics] The dollar is near its lowest level in 16 weeks, and the yuan is heading for its biggest weekly gain since 2005


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The dollar settled near its lowest level in 16 weeks against a basket of major currencies today, Friday, before the release of key data related to the labor market in the United States, while the yuan is heading to record the largest weekly gain since China revalued its currency in 2005.

 

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The dollar index - which measures the performance of the US currency against 6 other major currencies, including the yen and the euro - fell 0.1% to 104.55 points, after earlier reaching its lowest level since June 29 at 104.36.

The index fell by more than 5% last November, amid expectations that the Federal Reserve (the US central bank) will begin, during its meeting in December, to slow down the pace of raising interest rates.

Investors are now focusing on US non-farm payrolls data, due to be published on Friday, in search of indications of how higher interest rates will affect the labor market.

The rise of the Chinese yuan
Meanwhile, the Chinese Yuan rose 0.4% against the dollar, to 7.0294.

The yuan is heading for the largest weekly gain since China revalued the currency in 2005, according to Refinitiv data, supported by expectations that China will abandon the “zero-Covid” policy, as well as anticipation of the US central bank slowing the pace of rate cuts.


The dollar fell 1% to 133.98 yen, and fell to its lowest level since August 16.

The euro saw little change; It reached $1.0527, after rising 1.1% on Thursday.

The pound sterling fell 0.1% to $1.2260, rising 1.7% yesterday, Thursday, and reaching its highest level in 5 months at $1.2311.

 

https://www.aljazeera.net/ebusiness/2022/12/2/الدولار-قرب-أدنى-مستوى-في-16-أسبوعا

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