By: Barbara Zigah
Yesterday, Su Ning, the Vice Governor of China’s central bank commented that they had no intention of tightening the country’s money supply and would be using market tools rather than quota styled controls as they are continue to work toward repairing China’s economy. Following those comments, the U.S. Dollar Index, a measure of the U.S. currency’s performance versus a basket of major currencies, slipped to 79.428 .DXY, a loss of .3%, and nearing 78.315 .DXY, a 7-month low hit earlier this week. Versus the Euro, the U.S. Dollar slipped to $1.4055, a loss of .1% from Wednesday’s U.S. late trading; earlier in the day, though, it has slipped to $1.4007 on the EBS trading platform, which was the lowest price in nearly two weeks.
According to one analyst, the U.S. Dollar will likely regain ground against other currencies as investors continue to close out their long positions in the commodities and stock markets. The Yen also slipped broadly following those remarks, but recovered quickly with traders wary about retaining their yen-selling positions in light of the volatility of the Shanghai stock market, which tumbled to an 8-month low. The U.S. Dollar fell to 94.95 Yen, a loss of .1%, while the Euro held steady at 133.45 Yen.
Dollar Index slips on China Central Bank Comment
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.