Currency Markets Subdued After China Rate Hike

28 Dec

NEW YORK – The dollar edged down slightly against the euro and the yen on Monday, amid slow trade and as currency traders shrugged off news of a rise in Chinese interest rates.

“It has been a snow day in the financial markets,” said Kathy Lien of Global Forex Trading.

“Currencies, equities, treasuries and commodities treaded water throughout the North American trading session with the dollar holding its value against most of the major currencies.”

The impact of China's decision to raise interest rates appeared to have a limited impact on currency markets.

“Typically tightening by the People's Bank of China triggers a strong wave of risk aversion in financial markets but to many people's surprise, the impact this time has been nominal,” said Lien.

The euro rose to 1.3161 dollars at 2200 GMT, versus 1.3116 at 1500 GMT on Friday.

The dollar fell to 82.78 yen versus 82.90 on Friday, while the pound rose to 1.5417 dollars, from 1.5411.

The dollar fell to 0.9599 Swiss francs from 0.9618 on Friday.

– AFP /ls

Channel News Asia

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