Dollar Strengthens to 11-Week Peak Amid China Property Concerns

17 Oct 2024 , 11:15 AM

The dollar remained at an 11-week high on Thursday as uncertainty over the approaching US election loomed and the durability of the US economy added to wagers that the Federal Reserve would be less aggressive in reducing rates than its rivals worldwide.

The highlight of Asia Day will be a news conference in China at 0200 GMT focused on steps to support its battered property industry, which will be critical in putting the economy back on track and determining if the rebound in Chinese markets can continue.

Sterling was unchanged at $1.2991, close to a two-month low reached on Wednesday due to weaker-than-expected UK inflation figures, while the yen battled near the 150 per dollar level, closing at 149.47.

The euro fell 0.02% to $1.0859 ahead of the European Central Bank’s monetary policy meeting later on Thursday, which is expected to include another rate cut.

Before the press briefing, the offshore yuan was up 0.04% to 7.1328 per dollar.

The Australian dollar, which is sometimes seen as a liquid proxy for the Chinese yuan, lost 0.02% to $0.6665, remaining near a one-month low set the previous session.

Investors’ displeasure with China’s lack of further stimulus details has weighed on the Australian dollar, limiting further rise in Chinese markets.

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