During late Asian trading on Monday, the US currency traded lower against major currencies. The greenback dropped to a 5-day low versus the euro, 4-day low against the pound and a new multi-week low versus the yen.
The People’s Bank of China announced Saturday that it is upwardly revising interest rates by 25 basis points.
The benchmark 1-year deposit and lending rates were raised by 0.25 percentage points each to 2.75% and 5.81%, respectively. The central bank also adjusted other deposit and lending interest rates accordingly. The rate revision comes close on the heels of a rate adjustment of a similar magnitude on October 19th, when the central bank began tinkering with interest rates for the first time in about 3 years.
The greenback declined against the euro in late Asian session and fell to a 5-day low of 1.3171 by about 2:00 am ET today. As of now, the greenback is trading near 1.3153 versus the euro from early high of 1.3074.
Against its Japanese counterpart, the dollar plunged further in today’s Asian deals and slipped to a fresh multi-week low of 82.66 as of 2:15 am ET. At present, the dollar-yen pair is trading at 82.74.
On the economic front, the number of houses authorized for construction in Japan rose 6.8% from a year earlier in November to just under 73,000, the Ministry of Land, Infrastructure, Transport and Tourism said today.
That was higher than the 5.1% rise forecast by analysts after the 6.4% rise in October.
After a slight gain in early session, the greenback also weakened against the British pound and the Swiss franc in late Asian trading. At 2:00 am ET, the greenback dropped to 0.9578 versus the franc and a 2:00 am ET, fell to 1.5459 against the sterling from early highs of 0.9643 and 1.5403, respectively. Currently, the dollar is worth 0.9590 versus franc and 1.5445 versus the pound.
There are no other economic reports due today as some markets remain closed following the Christmas holiday.