NEW YORK (Reuters) – The dollar was on track for its biggest daily percentage gain against a basket of major currencies in a week on Friday, as uncertainty over beleaguered Chinese property developer Evergrande helped the note green to rebound after a sharp drop in the previous session. .
China Evergrande Group owes $ 305 billion and ran out of cash, missing a deadline to pay $ 83.5 million on Thursday and leaving investors wondering if it will make the payment before a grace period of 30 days. A business collapse could create systemic risks for China’s financial system.
The safe haven dollar on Thursday saw its largest single-day percentage decline in about a month after Beijing pumped new liquidity into the financial system and Evergrande announced it would pay interest on an onshore bond.
The drop came a day after the greenback was lifted by the US Federal Reserve’s announcement on Wednesday that it will likely start cutting monthly bond purchases as early as November and reported interest rate hikes could track sooner than expected as central bank pulls away. of its pandemic crisis policies.
âWe’re in one of those situations, and it doesn’t always happen, where the dollar is the beneficiary of multiple ideas,â said Joseph Trevisani, senior analyst at FXStreet.com.
“The US economy looks better than most of its competition, there is a lingering fear about Evergrande and what else is in the rather opaque Chinese economy and political system , and the Fed finally seems ready. “
The dollar index rose 0.291%, with the euro down 0.25% to $ 1.1707.
Kansas City Fed President Esther George said the U.S. labor market has already passed the central bank’s test to reduce its monthly bond purchases, and the discussion should now turn to how its holding massive bond yields could complicate the decision to raise rates.
In remarks prepared during a listening session with a wide range of economic players, Fed Chairman Jerome Powell did not detail his own outlook for economic or monetary policy, which he described at the close of the two-day Fed meeting on Wednesday.
The pound weakened a day after hawkish comments from the Bank of England on Thursday pushed the pound to its biggest one-day percentage gain since August 23.
The Japanese yen weakened 0.38% against the greenback to 110.73 per dollar, while the British pound last traded at $ 1.3675, down 0.30% on the day.
Cryptocurrencies collapsed after China’s most powerful regulators stepped up the country’s crackdown on digital assets, with a blanket ban on all crypto transactions and crypto mining.
Bitcoin, the world’s largest cryptocurrency, last fell 6.12% to $ 42,154.72.
Smaller coins, which generally move in tandem with bitcoin, have also fallen. Ether last fell 8.43% to $ 2,888.00, while XRP last fell 7.2639757% to $ 0.93.
Currency bid price at 10:19 am (1419 GMT)
Description RIC Last closure US Pct Change YTD Pct High Bid Low Bid
93.3690 93.1040 + 0.29% 3.765% +93.4210 +93.0430
$ 1.1707 $ 1.1738 -0.26% -4.18% + $ 1.1747 + $ 1.1701
Dollar / Yen
110.7300 110.3300 + 0.36% + 7.17% +110.7300 +110.2000
Euro / yen
129.64 129.49 + 0.12% + 2.14% +129.7600 +129.3900
Dollar / Switzerland
0.9255 0.9247 + 0.12% + 4.65% + 0.9260 +0.9225
Pound sterling / dollar
$ 1.3675 $ 1.3723 -0.34% + 0.10% +1.3736 $ +1.3660
1.2696 1.2658 + 0.31% -0.29% +1.2730 +1.2644
Australia / Dollar
$ 0.7246 $ 0.7297 -0.69% -5.80% + $ 0.7316 + $ 0.7237
Euro / Switzerland
1.0835 1.0850 -0.14% + 0.26% +1.0864 +1.0822
Euro / Pound
0.8558 0.8553 + 0.06% -4.24% +0.8572 +0.8550
Dollar / Dollar $ 0.7007 $ 0.7070 -0.86% -2.40% + $ 0.7080 + $ 0.7006
Dollar / Norway
8.6150 8.5835 + 0.25% + 0.21% + 8.6280 + 8.5790
Euro / Norway
10.0868 10.0694 + 0.17% -3.63% +10.1029 +10.0610
Dollar / Sweden
8.6598 8.6171 + 0.12% + 5.65% +8.6654 +8.6218
Euro / Sweden
10.1395 10.1277 + 0.12% + 0.63% +10.1447 +10.1218
Reporting by Chuck Mikolajczak; Editing by Dan Grebler