Dollar recovers slightly

Published: 24 Oct at 12 PM Tags: Euro, Dollar,

The dollar is slightly up against a basket of other major currencies. However the greenback has remained within recent ranges as investors show some concern over China’s liquidity. Money market rates hit a three-month high yesterday as the People’s Bank of China again refused to inject cash into the system.

All eyes are currently on manufacturing activity due to be released by China later today. This will give a better indication of the country’s economic health. The dollar is up against the yen to 97.42 yen from 97.13 yen. Against the Swiss franc the greenback remained steady at 0.8922 francs following an earlier dip to 0.8908.

Concerns about the financial sector in Europe are continuing to put pressure on the single currency. The euro is currently holding steady at $1.3777. Yesterday the European Central Bank said it would be testing major banks next year in an effort to build confidence. However, some analysts have expressed concern that such measures could actually have the opposite effect.

The Australian dollar has risen slightly on reduced chances that there will be an interest rate increase. The Aussie is currently trading at $0.9630.

The US dollar remains under pressure as it looks likely the Federal Reserve will put a hold on plans to begin tapering its bond buying programme.