The better-than-expected Chinese growth data released today gave a boost to Asian currencies, drove the yuan to the highest level in a week and put pressure on the dollar.
But the attack on a hospital in Gaza yesterday made the moves modest and kept investors on the lookout for the possibility of a widening conflict.
Official data showed that the Chinese economy grew by 1.3 percent in the third quarter, up from 0.5 percent in the second quarter and exceeding market expectations of 1 percent growth. Industrial output also rose and unemployment fell.
According to “Reuters”, the Chinese yuan reached the highest level in a week, registering 7.2905 against the dollar, but then fell to 7.312. The Australian dollar, sensitive to the Chinese economy, rose 0.24 percent in the latest trading, registering 0.6381 dollars, and the New Zealand dollar rose 0.18 percent to 0.5907 dollars.
The dollar index, which measures the performance of the US currency against a basket of six rival currencies, fell slightly to 106.19 after rising 0.53 percent yesterday but remained below the 11-month high it touched last week and stood at 107.34.
The euro settled at 1.0571 dollars, while the pound sterling rose 0.1 percent to 1.2194 dollars after data showed that inflation in Britain did not decline in September as expected.
In the latest trading, the yen registered a slight rise at 149.69 to the dollar. The Bank of Japan unexpectedly announced today the purchase of two billion dollars worth of bonds to keep downward pressure on yields.
