The US dollar rises Friday following the People’s Bank of China alleviated worries a weaker Chinese yuan could halt the Federal Reserve to increase interest rates.
China’s central bank set the midpoint rate at 6.3990 yuan per greenback.
The dollar ended at $1.1141 per euro. Against the Japanese yen, the currency stood at ¥124.50.
The latest concerns, pressed by the surprise policy action, have somewhat subsided. “But there is no change in the fact that the Chinese economy is slowing,” said Masafumi Yamamoto, Senior Strategist at Monex Securities.
PBOC added they saw no additional reason to weaken the yuan given China’s firm economic fundamentals.
The material has been provided by InstaForex Company – www.instaforex.com