Dollar strong as markets focus on Chinese data

15 Sep 2023 , 10:14 AM

After good U.S. economic data and an ECB rate hike, the dollar was on the offensive in Asia on Friday. Traders’ focus now cautiously shifts to a data avalanche from China.

In August, U.S. retail sales rose 0.6% versus an anticipated 0.2% increase because to rising petrol prices, as market participants reacted to the European Central Bank’s 25-basis point increase.

The U.S. dollar index was recently near its six-month high of 105.430, at 105.380.

In relation to the dollar, the euro was still close to its multi-month low of $1.0632.

The focus of the market now shifts to a flood of economic data coming out of Asia in the morning, including retail sales and investment growth, keeping traders alert for additional signs of weakening in the second-largest economy in the world.

Prior to the release of the report, the offshore yuan decreased further versus the dollar, reaching 7.2918.

Following the People’s Bank of China’s (PBOC) announcement that it would reduce the reserve requirement ratio for banks by 25 basis points, the yuan declined on Thursday.

For feedback and suggestions, write to us at [e-mail]