Make Kitco Your Homepage

Yen, Swiss franc gain on China concerns, dollar drops

Kitco News

NEW YORK, Nov 28 (Reuters) - The safe-haven Swiss franc and Japanese yen gained on Monday, while the Aussie dollar and Chinese yuan underperformed as protests against COVID restrictions in China knocked market sentiment.

The U.S. dollar dipped, meanwhile, which analysts said was unusual as it ran counter to its typical role as a safe haven.

Hundreds of demonstrators and police clashed in Shanghai on Sunday night as protests over China's stringent COVID restrictions flared for a third day and spread to several cities in the wake of a deadly fire in the country's far west.

"We're really looking at the government response to what's happening... the government response is so unpredictable, and of course that just means de-risking," said Chris Weston, head of research at Pepperstone.

The greenback dipped 0.46% to 138.51 Japanese yen , and fell 0.41% against the Swiss franc to 0.9440. The Euro gained 0.29% to $1.0433.

Shaun Osborne, chief FX strategist at Scotiabank in Toronto, said that the move in the dollar could reflect a shift in market sentiment towards the U.S. currency, but noted that its too soon to be certain.

“It does suggest perhaps that the swing against the dollar in the sense of the broader market mood or market positioning is perhaps running a little bit deeper this morning and that might well be significant,” Osborne said.

The dollar index has fallen to 105.85 from a 20-year high of 114.78 on Sept. 28 on expectations that its rally may have been overstretched and as the Federal Reserve looks to slow its pace of rate increases.

The risk sensitive Aussie dollar was the worst performing major currency, falling 0.93% to $0.6692. The currency was also dented by data showing that Australian retail sales suffered their first fall of 2022 in October as rising prices and higher interest rates finally seemed to have an impact on spending.

The offshore yuan weakened against the dollar to 7.2273.

Fed policy will remain a key focus for the market this week with Fed Chair Jerome Powell due to speak on Wednesday, and with key jobs data for November due on Friday.

The U.S. central bank is expected to hike rates by an additional 50 basis points when it meets on Dec. 13-14.

========================================================

Currency bid prices at 9:48AM (1448 GMT)

Description
RIC
Last
U.S. Close Previous Session
Pct Change
YTD Pct Change
High Bid
Low Bid
Dollar index
105.8500
106.3400
-0.44%
10.649%
+106.5200
+105.3100
Euro/Dollar
$1.0433
$1.0403
+0.29%
-8.23%
+$1.0497
+$1.0342
Dollar/Yen
138.5100
139.1650
-0.46%
+20.33%
+139.4350
+137.5000
Euro/Yen
144.50
144.75
-0.17%
+10.88%
+145.0000
+143.0600
Dollar/Swiss
0.9440
0.9480
-0.41%
+3.50%
+0.9479
+0.9407
Sterling/Dollar
$1.2053
$1.2089
-0.28%
-10.86%
+$1.2118
+$1.2027
Dollar/Canadian
1.3454
1.3400
+0.41%
+6.41%
+1.3473
+1.3395
Aussie/Dollar
$0.6692
$0.6756
-0.93%
-7.92%
+$0.6728
+$0.6667
Euro/Swiss
0.9849
0.9833
+0.16%
-5.03%
+0.9890
+0.9793
Euro/Sterling
0.8654
0.8598
+0.65%
+3.02%
+0.8675
+0.8587
NZ Dollar/Dollar
$0.6208
$0.6247
-0.59%
-9.27%
+$0.6244
+$0.6193
Dollar/Norway
9.9245
9.8765
+0.60%
+12.79%
+9.9800
+9.8835
Euro/Norway
10.3517
10.2549
+0.94%
+3.38%
+10.3856
+10.2623
Dollar/Sweden
10.4313
10.4112
+0.61%
+15.67%
+10.5028
+10.3700
Euro/Sweden
10.8834
10.8171
+0.61%
+6.35%
+10.8988
+10.8406
Additional reporting by Harry Robertson in London and Rae Wee in Singapore, Editing by Nick Zieminski
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.