Around 2 p.m., the greenback yielded 1.06% to 1.0689 dollars for one euro, and 0.72% to 6.8631 yuan for one dollar, the Chinese currency being boosted by a good indicator.
The dollar was down more than 1% against the euro on Wednesday, suffering from its safe haven status as investors’ risk appetite picks up after an early indicator signaling an economic rebound in China since the end of anti-Covid measures .
Around 1:00 p.m. GMT (2:00 p.m. in Paris), the greenback yielded 1.06% to 1.0689 dollars for one euro, and 0.72% to 6.8631 yuan for one dollar, the Chinese currency being boosted by a good indicator.
The Purchasing Managers’ Index (PMI), a reflection of the health of the industrial world, stood last month at 52.6 points against 50.1 in January, announced the National Bureau of Statistics (BNS).
“The good news from China triggered a surge of risk appetite which penalized the dollar, a safe haven”, summarizes Ricardo Evangelista, analyst at ActivTrades.
This appetite for market risk has dampened the dollar’s rise.
Across the Channel, the pound benefited earlier this week from an agreement between the EU and the United Kingdom on Northern Ireland.
Bank of England (BoE) boss Andrew Bailey told a cost of living conference on Wednesday that the successive shocks of Brexit, Covid-19 and the war in Ukraine had made the country “more poor”.
“People shouldn’t have to worry so much about inflation”, which is still over 10% in the UK, he said.
But “I advise against indicating that we are going to stop raising rates, or that we will undoubtedly continue to raise them”, because “nothing is decided”, he affirmed.
The pound took 0.44% to 1.2074 dollars but gave up 0.63% to 88.53 pence for one euro.