LONDON/SINGAPORE (Reuters) – The euro edged lower against the dollar on Tuesday, while the yuan advanced from its highest level in more than a year, boosted by a stimulus announcement from China that was the latest boost to risk appetite.
At 11:25 the euro slipped 0.02% to $1.1178, but was still close to its 13-month high of $1.1201 set in August.
The onshore yuan is at $7.0218 after rising to a 16-month high of $7.0012. In offshore trading, the Chinese currency is at $7.0205 after briefly strengthening above the key $7 level to a peak of $6.9952.
Sterling fell 0.3% to $1.3372. It had previously risen to a level not seen since March 2022, at $1.343, helped by less aggressive expectations of rate cuts from the Bank of England this year than from the Federal Reserve.
According to the FedWatch tool, markets are expecting a 59.1% chance of a 50 basis point rate cut at the Fed’s next policy meeting, up from 37% a week ago.
The dollar index rose 0.05% to 100.521 after falling more than 0.5% in yesterday’s session.
The yen gave up 0.7% to $144.17.
(Translated by Laura Contemori, edited by Alessia Pé)