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The US dollar strengthened during Thursday's session, which led to a weakening of risk-sensitive currencies.
At the same time, Treasury Secretary Steven Mnuchin announced he would not attend the upcoming investment conference in Saudi Arabia, which coincided with a brief rise in performance.
Mnuchin's decision was made following the decision of US Secretary of State Mike Pompeo, saying the Saudi government should have more time to investigate the disappearance of journalist Jamal Khashoggi.
ICE US Dollar Index
DXY, + 0.30%
was up 0.1% at 95,694, while risk-sensitive currencies such as the Canadian dollar
USDCAD, + 0.4607%
and the Australian dollar
AUDUSD, -0.1256%
softened.
Emerging market currencies also exacerbated their losses against silver, with the largest movements being those of the Mexican peso.
USDMXN, + 1.3868%
and read Turkish
USDTRY, + 1.1875%
against which the dollar appreciated by 1.5% and 1.3%, respectively.
The peso also suffered after previous comments from President Donald Trump who, in a tweet, threatened to close the southern border of the United States in Mexico on the issues of immigration.
In addition, the Treasury has refrained from designating China as a currency manipulator in its semi-annual report on exchange practices released Wednesday night, noting that the intervention of the People's Bank of China had been limited this year. But he issued a stern warning about the weakness of the yuan, which declined by about 7% against the dollar in 2018.
Analysts have largely attributed the weakness of the US dollar to market forces, including the massive sell-off in emerging markets over the summer, as opposed to a voluntary devaluation as tactical of the US trade war and China. A weaker currency makes a country's goods more competitive in the global market.
Do not miss: That's why investors should not leave the Chinese yuan eyes
The yuan has weakened following the report. In Beijing, the Chinese currency briefly hit its lowest level since January 2017 after the release of the report. A last dollar reaches 6.9376 yuan
USDCNY, + 0.1487%
up 0.2%. In the offshore market, the yuan was at its lowest level since August Thursday, with a dollar buying 6.9493 yuan.
USDCNH, + 0.2655%
up 0.3%.
The weakness of the currency also came from the fact that Chinese equities have reached their lowest level in four years, causing Asian equities to fall. The Shanghai Composite
SHCOMP, -2.94%
fell by nearly 3%, while the Shenzhen Composite
399,106, -2.73%
lost 2.7%.
In other news in China, the country's gross domestic product data for the third quarter – expected at 6.6 percent for the year – is expected at 22 hours. Is.
In Brussels, the last summit of the European Union on the theme of Brexit started on Wednesday. The possible extension of the post-Brexit transition period to three years seems to be at the center of discussions. This extension would give the United Kingdom another year to conclude a trade agreement with the EU and is considered an olive branch in the negotiations.
L & # 39; euro
EURUSD -0.4260%
slightly lower at $ 1.1449, down $ 1.1502 Wednesday night, while the pound sterling
GBPUSD, -0.7320%
rebounded between positive territory and negative territory, the last exchange at $ 1.3060, down $ 1.3114.
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