Investing.com – The U.S. dollar was mixed against its main rivals on Monday, amid growing risk appetite, after China announced over the weekend that it was relaxing the yuan’s fixed peg to the U.S. dollar.
The People's Bank of China announced the move late Saturday, indicating that the relaxation of the currency peg represented the bank’s increased optimism with regard to the global economic recovery.
During European morning trade, the greenback was down slightly against the euro, with EUR/USD gaining 0.12% to hit 1.2403.
Later Monday, president of the European Central Bank, Jean-Claude Trichet was due to testify before the European Parliament in Brussels. Traders were likely scrutinizing his comments for clues to future shifts in monetary policy.
The greenback was also down against the Swiss franc with USD/CHF dropping 0.17% to hit 1.1069.
But the greenback was up against the yen, with USD/JPY rising 0.7% to hit 91.33.
Earlier Monday, Japanese finance minister, Yoshihiko Noda, lauded China's announcement that it will allow more flexibility in the yuan, saying:
"I expect it to be a plus for the China and Asia economies as well as the world economy.”
Meanwhile, the greenback was down against sterling with GBP/USD gaining 0.3% to hit 1.4870.
Meanwhile, the greenback was also down against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 1.42% to hit 0.8843; NZD/USD gaining 1.01% to hit 0.7138; and USD/CAD shedding 0.46% to hit 1.0172.
Earlier Monday, Australia and China signed more than AUD 8.8 billion of commercial and mining deals as a senior Chinese leader urged closer trade ties between the two countries.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.22%.
The People's Bank of China announced the move late Saturday, indicating that the relaxation of the currency peg represented the bank’s increased optimism with regard to the global economic recovery.
During European morning trade, the greenback was down slightly against the euro, with EUR/USD gaining 0.12% to hit 1.2403.
Later Monday, president of the European Central Bank, Jean-Claude Trichet was due to testify before the European Parliament in Brussels. Traders were likely scrutinizing his comments for clues to future shifts in monetary policy.
The greenback was also down against the Swiss franc with USD/CHF dropping 0.17% to hit 1.1069.
But the greenback was up against the yen, with USD/JPY rising 0.7% to hit 91.33.
Earlier Monday, Japanese finance minister, Yoshihiko Noda, lauded China's announcement that it will allow more flexibility in the yuan, saying:
"I expect it to be a plus for the China and Asia economies as well as the world economy.”
Meanwhile, the greenback was down against sterling with GBP/USD gaining 0.3% to hit 1.4870.
Meanwhile, the greenback was also down against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 1.42% to hit 0.8843; NZD/USD gaining 1.01% to hit 0.7138; and USD/CAD shedding 0.46% to hit 1.0172.
Earlier Monday, Australia and China signed more than AUD 8.8 billion of commercial and mining deals as a senior Chinese leader urged closer trade ties between the two countries.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.22%.