Current dollar rate as of today: The dollar is moderately strengthening against the euro and pound sterling. but slightly declining against the Japanese yen after the publication of macroeconomic data from China.
As it became known on Monday, growth in retail sales and industrial production in China in July was weaker than analysts’ forecasts. Retail sales rose 2.7% year-on-year instead of the expected 5% growth, and industrial production growth in China slowed down to 3.8% last month from 3.9% in June, although the analysts’ consensus forecast for the indicator was a 4.6% rise.
U.S. current dollar rate – What’s happening in the market?
Worse-than-expected, statistical data has increased the demand for protective assets, including the yen (to a larger extent) and the dollar.
The People’s Bank of China injected 400 billion yuan (almost $60 billion) into the financial system as part of its medium-term lending program (MLF) to support the Chinese economy, and cut the rate on one-year MLF loans by 10 basis points to 2.75% per year.
The so-called offshore yuan (traded outside mainland China) fell 0.5% to 6.7738 yuan/$1 in Hong Kong amid the easing of monetary policy.
Other important events for world markets this week will be the publication of the minutes of the Federal Reserve’s meeting in July on Wednesday and the report on U.S. retail sales on Friday, says Trading Economics.
The euro fell 0.2% to $1.0238 against the dollar, down from $1.0259 at market close last Friday. The pound fell by 0.38% to $1.2092 from $1.2138 at the close of the previous session.
In pair with the yen, the rate of the American currency is 133.38 yen against 133.42 yen on Friday, dropping by 0.2%.
The ICE index showing the dollar’s movement against six currencies (euro, Swiss franc, yen, Canadian dollar, British pound and Swedish krona) was up 0.18% in trading. The broader WSJ Dollar Index adds 0.15%.
We previously reported that markets get restless ahead of the weekend.
Current yuan to dollar exchange rate has fallen to its lowest since 2008
Current yuan to dollar exchange rate dropped to 7.2256 yuan per dollar. This is the lowest level in 14 years, reports RBC. The offshore yuan-dollar exchange rate has fallen to a record low of 7.2577 yuan per dollar since China began trading the currency in 2010.
The People’s Bank of China sets reference exchange rates for the yuan daily. On Tuesday it set the yuan-dollar exchange rate at 7.0722 yuan. This was the lowest since July 2020. The exchange rate of the yuan, which is traded in mainland China, is controlled by the NBK and can deviate from the reference rate by no more than 2 percent in either direction during the day. In Hong Kong and Macau, the CNH offshore exchange rate to foreign currencies may vary without restrictions.
The Chinese yuan to dollar exchange rate today fell to its weakest level since the 2008 global financial crisis amid persistent dollar appreciation against major currencies and fears that China is weakening support for its currency.
The yuan has fallen more than 4 percent against the dollar this month and may post its worst performance in a year since 1994, the publication estimated. China’s currency is under pressure as the country’s monetary policy diverges from U.S. policy, leading to capital outflows.
Earlier we reported on history low for the pound British.
History low for the pound British
Today we can observe history low for the British pound. The British pound has fallen in the international forex market by almost 5% against the dollar – to a record low of $1.0384. The pound fell 0.85% against the U.S. dollar to $1.0762.
The British currency depreciated after the Ministry of Finance of the country promised to continue cutting taxes, raising fears that the new policy will lead to a sharp rise in inflation and the national debt, Bloomberg wrote. The pound’s collapse was the biggest intraday drop since March 2020, when markets were panicked by the start of the COVID-19 pandemic, the publication estimated.
The sell-off in the currency began on Friday, after the government announced a plan for a massive tax cut in the U.K., which will affect individuals and businesses and increase the budget deficit.
“History low for the British pound shows that markets do not trust the UK,” said Saxo Capital Markets strategist Jessica Amir. – The pound is one step away from parity with the dollar, and things will only get worse from here.”
The British currency has already fallen 20% against the dollar this year. According to Bloomberg, the fall in the British pound sterling in 2022 surpassed the collapse seen after the vote to leave the European Union (Brexit) in 2016. At that time, the U.K. currency depreciated by about 16% in one year.
Earlier we reported that the dollar is getting cheaper against most currencies after rising the day before.
The dollar is getting cheaper against most currencies after rising the day before. Global money is getting cheaper
The dollar is getting cheaper against the euro, the yen and the pound sterling today after a solid rise in the previous session on the background of the fact that all the world’s money’s getting cheaper.
The dollar is correcting because investors are trying to fix profits after its significant strengthening, said Trading Economics. Experts believe that the U.S. currency will continue to strengthen on the background of a rapid tightening of monetary policy by the Federal Reserve (FRS). Also, the dollar is supported by reducing the appetite for risk in world markets.
Further growth in volatility in the financial markets will strengthen the dollar because of its status as a “safe haven” currency, said an analyst on the currency market, CBA Carol Kong.
The euro rose 0.53% to $0.9660 against the dollar, up from $0.9609 at the close of the previous session. The day before, European currencies were cheaper against the dollar by 0.8%.
The pound rose by 1.07% to $1.0803 during the trading session, compared to $1.0689 the day before. The exchange rate of the dollar against yen decreased by 0.30% – down to 144.31 yen against 144.75 yen by the end of the previous session. On Monday the American currency grew by 1.5% against the pound and by 1% against the yen.
The index, calculated by ICE, which shows the dollar trend against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and the Swedish krone), was losing 0.5% during trading. The day before, the indicator had updated its 20-year high.
Earlier we reported that the Nasdaq is on the plus side amid signs that growth stocks are recovering.
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