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Foreign exchange market: rise in currencies

20/10/2025
Source : ORISHAS FINANCE
Categories: Economy/Forex

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This Monday, the dollar rose against the yen, fell against the euro. The Chinese yuan is growing thanks to a firmer than expected correction and commercial optimism .

The dollar appreciated against the yen and rose slightly fell against the euro on Monday, while the attention of investors was temporarily focused on political developments in Japan and in the eurozone, while continuing concerns about the risks of American credit continued to weigh on market morale. The dollar has increased by 0.1% to 150.75 yen, after reaching 151.20 earlier in the session. Hajime Takata, member of the Board of Directors of the Bank of Japan, who voted against keeping rates unchanged in September, reiterated Monday his plea for a resumption of rate hikes, bringing a some support for the Japanese currency.

The Australian dollar rose on Monday, supported by reasons for optimism about its main trading partner, the China, data showing that the Chinese economy is quite resilient to American tariffs, while Donald Trump has moderated some of his About trade.

The yen weakened as the curator Radical Sanae Takaichi seemed in a good position to become the first woman Prime Minister of Japan, after a decisive vote in Parliament scheduled for Tuesday.

The Chinese yuan improved slightly against Dollar on Monday, supported by official forecasts that were still firmer than expected and by the optimism that trade tensions with Washington subsided as Beijing met for the plenum.

At 03:20 GMT, the onshore yuan was up by 0.04% at 7.1248 per dollar, while its offshore counterpart traded at 7,1260.

Before the market opened, the People's Bank of China (PBOC) set the median rate at 7.0973 per dollar, or 345 pips of more than the Reuters' estimate of 7,1318.

Cash yuan is allowed to be traded by 2% on each side of the fixed midpoint each day.

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