Investing.com - The dollar trimmed gains against the other major currencies on Wednesday, but it still remained supported as upbeat Chinese trade data and stability in Asian markets continued to lift market sentiment.
USD/JPY gained 0.34% to 118.06, off Monday’s more than four-month trough of 116.68.
China’s central bank fixed the midpoint rate for the yuan at levels close to the fix of the previous two days, easing concerns over the rapid depreciation of the currency seen at the start of the year.
At the same time, official figures showed that Chinese exports rose 2.3% in yuan-denominated terms in December from a year earlier, rebounding from a 3.7% drop in November.
Exports were down 1.4% on a year-over-year basis in December in dollar terms, compared to forecasts for a drop of 8.0%.
Imports fell by 4% in yuan terms, after a 5.6% drop in November. In dollar terms, imports fell 7.6% from a year earlier, better than forecasts for an 11.5% decline.
The data indicated that the Chinese economy may be stabilizing, easing fears over a China-led slowdown in global growth.
EUR/USD edged up 0.15% to 1.0878, off lows of 1.0805 hit earlier in the day.
Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.4438, off the previous session’s five-year low of 1.4349, and was higher against the Swiss franc, with USD/CHF advancing 0.44% to 1.0067.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.11% at 0.6995 and with NZD/USD adding 0.15% to 0.6547.
Meanwhile, USD/CAD edged 0.10% higher to 1.4275, close to Tuesday’s fresh 12-1/2 year highs of 1.4315.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 98.96, after rising to 99.40 earlier in the session.