US dollar stable as Chinese economic data exceeded ‎expectations

Chinese growth data published today, Wednesday, which was better than expected, gave a boost to Asian currencies, driving the yuan to its highest level in a week and putting pressure on the dollar.

But the attack on a hospital in Gaza on Tuesday made the movements modest and kept investors awaiting the possibility of the conflict expanding.

According to Reuters, official data showed that the Chinese economy achieved growth of 1.3% in the third quarter, up from 0.5% in the second quarter and exceeding market expectations of a 1% growth. Industrial output also increased and unemployment fell

The Chinese yuan reached its highest level in a week, recording 7.2905 against the dollar, but then fell to 7.312. The Australian dollar, which is sensitive to the Chinese economy, rose 0.24 percent in the latest trading, recording $0.6381, and the New Zealand dollar rose 0.18 percent to $0.5907.

The dollar index, which measures the performance of the US currency against a basket of six competing currencies, recorded a slight decline to 106.19 after rising 0.53 percent yesterday, Tuesday, but it remained below the highest level in 11 months that it touched last week and reached 107.34.

The euro stabilized at $1.0571, while the British pound rose 0.1 percent to $1.2194 after data showed that inflation in Britain did not decline in September as expected.

The Israeli shekel remained at its lowest level since 2015, at around four to the dollar

In the latest trading, the yen recorded a slight increase at 149.69 to the dollar. On Wednesday, the Bank of Japan unexpectedly announced the purchase of bonds worth $2 billion to maintain downward pressure on yields.