NEW YORK
\nThe US dollar fell on Friday, taking a breather after five straight days of gains, as risk appetite increased following yet another round of stimulus measures from China that bolstered global equities led by Chinese stocks.
\nThe greenback, however, was on track for its third weekly gain, currently up 0.6% this week. The dollar index, measuring the US unit\u2019s value against six major currencies, has risen about 2.8% so far this month, its largest monthly gain since April 2022. It was last down 0.3% at 103.52, its largest daily fall since late September.
\nThe biggest support for the dollar over the last few weeks has been a shift in Federal Reserve policy expectations to a more moderate easing phase, after a slew of generally solid US economic data. The Fed slashed benchmark rates by a supersized 50 basis points in September, prompting the rate futures market at that time to price in another jumbo move this year.
\nThat Fed narrative, however, was not in focus on Friday.
\nInvestors were cheered overall by the Chinese government\u2019s launch of two funding schemes to help boost its stock market. Chinese equities rallied as a result, lifting other stock markets as well, including the S&P 500 and the Nasdaq. That elevated the Chinese yuan against the greenback and boosted commodity currencies such as the Australian and Canadian dollars.
\n\u201cToday\u2019s pullback in the dollar was more China-driven. Last night, China launched measures to support the stock market,\u201d said Erik Bregar, director, FX & precious metals risk management, at Silver Gold Bull in Toronto.
\nA slew of economic data from China, including third-quarter growth figures, however, met with a muted response from markets.
\nIn late morning trading, the dollar slid 0.4% against the yen to 149.64 It has advanced about 0.8% on the week, however, having broken above this level on Thursday for the first time since early August. The US currency also climbed 4.2% in October, its best monthly showing since April.
\nAdding to the dollar\u2019s shine in general was the rising prospect of former President Trump winning the November election, since his proposed tariff and tax policies are seen as likely to keep US interest rates high.
\nThe dollar fell further versus the Japanese currency after data showed US housing starts dropped 0.5% to a 1.354 million pace in September, after rising by a hefty 7.8% to 1.361 million.
\nThe euro, meanwhile, rose 0.2% against the dollar to $1.0861 , rising for the first time in eight days, and on track for its largest daily gain since Sept. 26.
\nMeanwhile, markets have been disappointed at the lack of further details offered by Chinese authorities on plans to revive the economy, and the yuan is headed for its largest weekly fall in more than 13 months against the dollar.<\/p>\n","protected":false},"excerpt":{"rendered":"
NEW YORK The US dollar fell on Friday, taking a breather after five straight days of gains, as risk appetite increased following yet another round of stimulus measures from China that bolstered global equities led by Chinese stocks. The greenback, however, was on track for its third weekly gain, currently up 0.6% this week. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-438344","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n