Dollar gains, yuan steady as investors skeptical of recovery in Chinese manufacturing sector
The dollar climbed against the Japanese yen on Tuesday after businesses and investors covered a shortfall in the U.S. currency, but overall market sentiment remained gloomy due to intensifying risks of the pandemic.
The Chinese yuan remained steady despite a growth recovery in the manufacturing sector in March, as investors stayed skeptical of the recovery considering that many businesses still struggled to resume operations amid global lockdowns.
The British pound fell against the dollar and the euro, brought down by low sovereign ratings that emphasized the need for a larger fiscal stimulus.
The trading data for Japan’s fiscal year will end Tuesday, and analysts expect volatile swings in the market as the market closes its books.
Analysts warned that a global recession remains a huge factor in trading and will more likely favor currencies least affected by worsening economic activity.
The dollar climbed 0.69%, at 108.55 against the Japanese yen. The euro lost 0.24%, at $1.1013. The pound dropped 0.71%, at $1.2331.
The dollar rose to 0.9610 against the Swiss franc while the pound sank 0.5%, at 89.34 pence against the euro.
In the onshore market, the Chinese yuan steadied at $7.0977. The New Zealand dollar recovered and steadied at 0.6029 against the dollar while the Australian dollar was at $0.6174.