The dollar fell on Wednesday once morest commodity-linked currencies such as the Australian dollar and once morest the euro, which drew support from a batch of data indicating that European inflation may have reached its limit.
The dollar was already under pressure from investors who were increasingly optimistic that China’s easing of strict Covid restrictions would lead to a recovery in the world’s second largest economy.
Wednesday’s data showed consumer price pressures in France eased more-than-expected in December, while data on Tuesday indicated that inflation in Germany fell by a much larger-than-expected rate. Spanish data last week painted a similar picture.
The euro, which on Tuesday recorded its biggest one-day drop once morest the dollar in two months, rose 0.82 percent as traders stuck to the idea that falling inflation might mean a change in the pace of interest rate increases by the European Central Bank.
The euro rose in the latest trading 0.5 percent once morest the dollar to 1.0603 dollars, while it increased 0.3 percent once morest the yen to 138.55 yen.
The Australian dollar had the best performance on Wednesday, as it rose in the latest transactions 2 percent to 0.6864 US dollars, heading for the largest daily gain in regarding two months. The New Zealand dollar rose 1.1 percent to $0.6315.
The yuan in foreign transactions rose 0.3 percent, recording regarding 130.66 yuan per dollar, while the pound sterling rose 0.7 percent to 1.2056 dollars.
