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Dollar slips against most major currencies

Dollar slips against most major currencies

The dollar weakened against most major currencies Wednesday as markets remained deeply troubled by the ongoing problems in the banking industry and the world economy, illustrated by a sharp fall in Chinese exports in February.
The 16-nation euro jumped to $1.2803 in late New York trading from the $1.2637 late Tuesday, while the British pound rose to $1.3848 from $1.3723.
The dollar fell to 97.27 Japanese yen from 98.85 yen.
Chinese exports plunged by 25.7 percent in February from a year earlier, a record decline. The data reminded markets how dependent export-oriented economies, such as China and Japan, are on consumer-driven countries like the U.S., and that they are unlikely to help boost global growth this year. Japan this week posted its first trade deficit in 13 years.
Meanwhile, the head of the U.S. Securities and Exchange Commission said the agency "hopefully" will propose next month the reinstatement of the uptick rule, which aims to prevent a massive plunge in a stock's price fueled by short selling. SEC Chairman Mary Schapiro also said the SEC wants revisions that would continue to provide the transparency investors need without excessively hurting banks.
The euro had gained some traction on Tuesday after Axel Weber, European Central Bank governing council member and Bundesbank president, said he would like the euro area's main interest rate to be cut no further than to 1 percent.
Weber said his personal view is that the ECB could cut rates again from the current 1.5 percent, but not by much.
Higher interest rates can support a currency, as investors move funds where they earn higher returns.
In other trading Wednesday, the dollar inched up to 1.2885 Canadian dollars from 1.2881, but fell to 1.1545 Swiss francs from 1.1637.


Updated : 2021-08-05 18:47 GMT+08:00