The US dollar touched a more than one-month high over concerns about China’s economy, while traders prepared for possible Japanese government intervention after the yen plummeted to its lowest level since November.
The dollar index, which measures the currency’s performance versus its major counterparts, was up 0.301% at 103.170, reaching its highest level in more than a month.
Meanwhile, two Chinese listed businesses complained over the weekend that they had not received payment from asset manager Zhongrong International Trust Co. for maturing investment products.
“Many traders are turning their attention back to China; I believe there’s a lot of anxiety about their growth potential and their present property problem, and I think one of the top wealth managers not being able to meet their loan commitments is a significant red signal,” said Edward Moya, senior market analyst at OANDA.
The yen was trading at 145.50 per dollar, its lowest level since November, with the dollar gaining 0.36% versus the currency.
The Bank of Japan has maintained its ultra-easy monetary policy even while other global central banks raised interest rates, making other nations’ yields appear more appealing and putting pressure on the yen.
Japan interfered in currency markets in September when the dollar surpassed 145 yen, leading the Ministry of Finance (MOF) to buy the yen and bring the pair down to approximately 140 yen. The yen has fallen roughly 10% against the dollar this year.
The Australian dollar fell to its lowest level since May, closing down 0.28% against the US dollar at $0.648. The currency is sometimes regarded as a gauge for investor attitudes toward China.
The pound was recently down 0.16% at $1.2676, while the euro was 0.38% weaker at $1.09045.
