Dollar steadies, Yuan down as China cuts growth target

© Reuters. Higher bond yields in the U.S. combined with the lowest growth target in China in 30 years to suppor – Higher bond yields in the U.S. combined with the lowest growth target in China in 30 years to support the greenback.

The that tracks the greenback against a basket of currencies rose 0.02% to 96.70 by 11:50 PM ET (4:51 AM GMT). U.S. Treasury yields pulled back from peaks in late January but demand for the dollar remains strong.

On Monday, stock markets in the U.S. gained and then plummeted as concerns that a much-anticipated trade deal between the U.S. and China could fail to deliver significant gains to global growth.

“The dollar firmed, stocks fell and U.S. Treasuries rose in the broader market, and we are bound to see the dollar gain against some currencies while slipping against others in such a situation,” said Shin Kadota, senior strategist at Barclays (LON:), according to Reuters.

Further supporting the dollar and pressuring the Chinese yuan was the work report by Chinese Premier Li Keqiang at the opening of the 10-day annual meeting of the National People’s Congress (NPC). Li said China will target GDP growth of between 6% and 6.5% for 2019, which would be the lowest rate in 30 years. Li also announced significant cuts to the value-added tax (VAT) that could support manufacturing.

The People’s Bank of China set the ‘s reference rate lower on Tuesday at 6.6998 compared to 6.7049 on Monday.

Elsewhere, the pair was up 0.14% to 111.90 and the Australian dollar gave up some ground against the greenback, with the pair down 0.23% to 0.7076.

The immediate focus in Australia on Tuesday was on the outcome of the Reserve Bank of Australia’s (RBA) March policy meeting later in the day. The Australian dollar took. Hit last month after the RBA stepped back from a long-standing tightening bias.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.