Investing.com – The U.S. dollar was mixed against its major rivals on Monday, in volatile, holiday-thinned trade, after China unexpectedly raised interest rates over the weekend in an effort to curb inflation and cool its rapidly growing economy.
Over the Christmas weekend, the People’s Bank of China announced on its website that it increased its benchmark deposit and lending rates by 25 basis points for the second time since mid-October. The unexpected move was aimed at reining inflation, which soared to a 28-month high of 5.1% in November.
During European afternoon trade, the greenback was down against the euro, with EUR/USD climbing 0.31% to hit 1.3156.
Meanwhile, the greenback was up against the pound, with GBP/USD slumping 0.32% to hit 1.5390. Earlier in the day, industry data showed that house prices in the U.K. declined for the sixth consecutive month in December.
Elsewhere, the U.S. dollar was up against the yen and Swiss franc, with USD/JPY rising 0.07% to hit 82.88, while USD/CHF added 0.09% to hit 0.9620.
Earlier in the day, the minutes of the most recent meeting of the Bank of Japan’s Monetary Policy Committee revealed that the BoJ needed to continue to monitor the effects of the rising yen on exporters, with one board member warning that the country’s gross domestic product could contract in the fourth quarter as a result of the strengthening yen.
Meanwhile, on Sunday, Swiss newspaper Sonntag reported that the Swiss government met with the heads of the nation’s top banks to discuss methods of protecting Swiss exports from the renewed strength of the Swiss franc.
Elsewhere, the greenback was down against its Australian and New Zealand counterparts, with AUD/USD climbing 0.12% to hit 1.0029 and NZD/USD climbing 0.09% to hit 0.7479.
However, the U.S. dollar was up against its Canadian counterpart, with USD/CAD gaining 0.07% to hit 1.0083.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17%.
Investors expected trading to be quiet throughout the day, with markets in the U.K., Canada, New Zealand and Australia closed for holiday, while traders in New York found it difficult to get to work after the region was blanketed by heavy snow overnight.
Over the Christmas weekend, the People’s Bank of China announced on its website that it increased its benchmark deposit and lending rates by 25 basis points for the second time since mid-October. The unexpected move was aimed at reining inflation, which soared to a 28-month high of 5.1% in November.
During European afternoon trade, the greenback was down against the euro, with EUR/USD climbing 0.31% to hit 1.3156.
Meanwhile, the greenback was up against the pound, with GBP/USD slumping 0.32% to hit 1.5390. Earlier in the day, industry data showed that house prices in the U.K. declined for the sixth consecutive month in December.
Elsewhere, the U.S. dollar was up against the yen and Swiss franc, with USD/JPY rising 0.07% to hit 82.88, while USD/CHF added 0.09% to hit 0.9620.
Earlier in the day, the minutes of the most recent meeting of the Bank of Japan’s Monetary Policy Committee revealed that the BoJ needed to continue to monitor the effects of the rising yen on exporters, with one board member warning that the country’s gross domestic product could contract in the fourth quarter as a result of the strengthening yen.
Meanwhile, on Sunday, Swiss newspaper Sonntag reported that the Swiss government met with the heads of the nation’s top banks to discuss methods of protecting Swiss exports from the renewed strength of the Swiss franc.
Elsewhere, the greenback was down against its Australian and New Zealand counterparts, with AUD/USD climbing 0.12% to hit 1.0029 and NZD/USD climbing 0.09% to hit 0.7479.
However, the U.S. dollar was up against its Canadian counterpart, with USD/CAD gaining 0.07% to hit 1.0083.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17%.
Investors expected trading to be quiet throughout the day, with markets in the U.K., Canada, New Zealand and Australia closed for holiday, while traders in New York found it difficult to get to work after the region was blanketed by heavy snow overnight.