Has risen The dollar rose broadly on Monday, as protests over “Covid-19” restrictions in China fueled uncertainty and weighed on sentiment.and sparking panic once more in the financial markets, which led to the decline of the yuan and pushed nervous investors towards the dollar as a safe haven.
“Covid” protests erupted across China, and spread to several cities in the wake of a fire that killed people in Urumqi, in the far west of the country, where hundreds of demonstrators and police clashed in Shanghai, on Sunday evening.
And the dollar rose once morest the yuan 0.76% in early foreign trade in Asia to 7.2456.
The Australian dollar fell 0.61% to $0.6714, while the New Zealand dollar fell 0.5% to $0.6216.
In an effort to support a slowing Chinese economy that has struggled under severe coronavirus restrictions, the central bank said on Friday that it will cut the reserve requirement ratio for banks by 25 basis points from December 5.
The euro fell 0.25% to $1.0377, while the pound sterling fell 0.24% to $1.2060.
The Japanese yen fell regarding 0.1% to 139.27 per dollar.
China protests
The latest developments in China stopped the decline in the dollar, which had fallen over the past few weeks, in the hope that the Federal Reserve (the US central bank) would soon slow the pace of raising interest rates, a view endorsed by the minutes of the November meeting of the Reserve Bank, which were published this week. Past.
The dollar index fell once morest a basket of currencies by 0.08% to 106.25, but without falling to its lowest level in three months at 105.30.
In general, the index is still on its way to recording a monthly decline of regarding 5%, which represents its largest decline in 12 years, as investors cling to signs of a shift in the Federal Reserve’s monetary tightening policy.
Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on the outlook for the US economy and labor market at an event at the Brookings Institution on Wednesday, which is likely to give more clues to the outlook for US monetary policy.
Falling Asian markets
Hong Kong’s Hang Seng fell 4.2% in early trade, while China’s CSI 300 fell as much as 2.5%, according to the Financial Times.
The Japanese Nikkei index fell for the second consecutive session today, Monday, as protests in China once morest strict restrictions to combat the Corona virus hurt investor sentiment, while technology stocks fell in line with their counterparts on Wall Street.
The Nikkei index ended the day’s trading down by 0.42%, at 28,162.83 points. It closed down 0.35% on Friday, following hitting a two-month high in the previous session.
The broader Topix index fell 0.68%.
European stocks
European stocks retreated from three-month highs on Monday, led by declines in energy, retail and mining stocks, following widespread protests in China over tough COVID-19 restrictions triggered a sell-off in global markets.
The Stoxx 600 index of European shares fell 0.5% by 08:02 GMT, following sharp declines in Asian stocks, according to Archyde.com.
Shares of European oil companies fell 2.0%, as Brent and US crude prices fell nearly 3%, while the decline in metal prices affected the shares of mining companies, which fell 1.1%.
Other European sectors with exposure to China, including automakers, also fell in early trade.