The dollar depreciates against foreign currencies on China data

The dollar depreciates against foreign currencies on China data


The dollar’s value is influenced by statistics from China, which showed that Chinese economic activity is slowing, but not in such an alarming pace, as expected.

MOSCOW, 19 Oct. The dollar against world currencies is decreasing in the course of trading Monday on the statistics from China, which reduces the probability of rate increase by the fed this year, according to AFP.

As at 10.27 GMT the dollar index (the dollar against a basket of currencies of six major U.S. trading partners) decreased by 0.01% to 94,68 item. The dollar against the yen fell to 119,36 yen per dollar with 119,46 yen per dollar at the previous closing. The Euro-dollar exchange rate has grown up to 1,1357 1,1349 of the dollar from the dollar to the Euro.

The growth of China’s GDP in the third quarter in annual terms it stood at 6.9% vs. 6.8%. Despite the fact that the rate was better than analysts ‘ forecasts, the growth of the economy still shows the slowest pace since 2009. The country’s industrial production in September rose yoy by 5.7% against the forecast of 6%. In August the growth was of 6.1%.

“The data was better than expected. They demonstrate that Chinese economic activity is slowing, but not in such an alarming pace as the market initially expected”, — quotes Agency Bloomberg of a word of a senior currency strategist Commonwealth Bank of Elias Haddad (Haddad Elias).

According to the minutes of the September fed meeting, decision on the first since 2006 the rate increase is necessary so that the level of inflation in the US was close to the target mark of 2%. The reason for the failure to raise rates was also uncertainty about the state of the global economy.

According to members of the Committee, the latest economic developments in the world and in the financial markets can constrain economic activity in the country due to the strengthening of the American currency. The negative effects of the economic slowdown in China and emerging markets may also put pressure on the economy, the fed noted.