The US dollar fell against Group-of-10 peers as China ramped up support for the yuan. The yen gained.
Bloomberg Dollar Spot Index fell 0.2%, extending its loss after the People's Bank of China delivered its strongest ever push-back against a weaker yuan via its daily reference rate. The move adds to other efforts to shore up China's currency, including asking state banks on Thursday to step up market intervention to prevent a surge in yuan volatility.
"The strong CNY fix helps to dampen the strength of the greenback and we cannot rule out further declines of the USD into the weekend and ahead of the Jackson Hole Economic Symposium next week," said Fiona Lim, a senior analyst at Malayan Banking Berhad in Singapore. "But pullbacks are not likely to be too deep as high-for-longer narrative persists in light of US economic resilience and upside risks to inflation".
Yield on 2-year Treasury note fell 1 basis point to 4.92%, while that on benchmark 10-year note fell 2 basis points to 4.25%.
USD/JPY fell 0.3% to 145.34, paring this week's rise to 0.4%.
Japan's core consumer inflation slowed in July in line with the central bank's view that upward pressure on prices is easing, but pockets of sticky price growth will keep monetary authorities on alert to upside risks.
AUD/USD rose 0.3% to 0.6424, paring this week's drop to 1.1%.
Source : Bloomberg
