Investing.com – The dollar rebounded against the yen on Thursday after China’s foreign exchange regulator said a report about Beijing slowing or halting U.S. treasury purchases could be wrong.
was up 0.36% to 111.84 by 02:52 AM ET (07:52 AM GMT) pulling away from Wednesday’s one-and-a-half month low of 111.26.
China’s foreign exchange regulator said on Thursday that a report about may be based on erroneous information and could be “fake”.
The dollar slumped on Wednesday, falling more than 1% against the yen after Bloomberg reported that Chinese officials reviewing foreign-exchange holdings had recommended slowing or halting purchases of U.S. bonds. China is the largest foreign holder of U.S. government debt.
The dollar was already on the defensive after the Bank of Japan trimmed the size of its bond purchases on Tuesday, sparking speculation that it could start to scale back its monetary stimulus later this year.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.18% to 92.28.
The dollar gained ground against the euro, with sliding 0.14% to 1.1930.
The dollar was also higher against the pound and the Swiss franc, with losing 0.23% to trade at 1.3476 and rising 0.34% to 0.9813.
Meanwhile, the Australian dollar strengthened after data on Thursday showed that retail sales recorded the largest monthly increase in four years in November.
was up 0.31% to 0.7866, while the New Zealand dollar was little changed for the day, with at 0.7195.
The Canadian dollar slipped lower against its U.S. counterpart, with edging up 0.12% to 1.2563, not far from Wednesday’s highs of 1.2582.
The loonie remained on the defensive as expectations for a rate hike by the Bank of Canada next week diminished amid concerns that the U.S. is about to withdraw from the .
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.
Latest posts by investing.com (see all)
- Forex- U.S. Dollar Falls as Sterling Rises - March 20, 2018
- Forex – GBP/USD Surge Above $1.40 Weighs on Dollar Ahead of FOMC - March 19, 2018
- Forex – Dollar Index Holds Steady with Fed Meeting in Focus - March 19, 2018