The US dollar was repressed against its major counterparts Wednesday as China’s policy easing measures failed to amplify its shares.
The People’s Bank of China curbed its one-year benchmark lending rate by 25 basis points to 4.6%, as well as the reduced reserve requirement by 50 basis points to 18% for most major banks.
Still, the Shanghai Composite Index fell 2.3%.
The greenback finished at $1.1531 per euro. Against the Japanese yen, the dollar traded at ¥119.12.
Equities ignite dollar moves. However, there is certain caution towards aggressively purchasing other currencies despite hopes China will think of “additional stock-supporting measures and easing measures,” said Kyosuke Suzuki, Director of Forex at Societe Generale.
The material has been provided by InstaForex Company – www.instaforex.com