The U.S. dollar fell on Friday, easing after five consecutive days of gains, as increased risk appetite followed fresh stimulus measures from China that propelled global equities, particularly Chinese stocks.
NEW YORK/LONDON, Oct 18 - The U.S. 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.
"That boosted Chinese stocks and risk sentiment more broadly and put pressure on dollar/yuan, which in turn helped lift euro/dollar. That kind of started the dollar pullback." Adding to the dollar's 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 U.S. interest rates high.
It benefited from the Chinese stimulus news after the European Central Bank cut euro zone interest rates by a quarter point on Thursday, in line with expectations. The ECB move was a nod to the deterioration in economic growth across the region. The offshore yuan rose against the dollar, which fell 0.3% to 7.1177 yuan. The Australian dollar , often used as a liquid proxy for the yuan, was up 0.1% at US$0.6705.
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