Better-than-expected Chinese growth data on Wednesday boosted Asian currencies, driving the yuan to a one-week high and putting a dampener on the U.S. dollar.
A blast at a Gaza hospital, however, kept moves modest and traders on edge at the prospect of a widening conflict. U.S. President Joe Biden is due to visit Israel on Wednesday.
Official data showed China's economy grew 1.3% in the third quarter, accelerating from 0.5% in the previous quarter and topping market forecasts for an increase of 1%. Industrial output rose and unemployment fell.
China's yuan hit a one-week high of 7.2905 per dollar, though it then retreated to 7.312. The China-sensitive Australian dollar, was last up 0.24% at $0.6381, while the New Zealand dollar was 0.18% higher at $0.5907.
The dollar index was marginally lower at 106.19. The gauge, which tracks the greenback against six major peers, rose 0.53% on Tuesday but remains below an 11-month high of 107.34 touched last week.
The euro was steady at $1.0571, while sterling was up 0.1% at $1.2194 after data showed British inflation failed to fall as expected in September.
Israel's shekel was pinned to the weaker side of 4 to the dollar, around its lowest since 2015.
Since mid-July, the benchmark 10-year Treasury yield has climbed about 100 basis points and the dollar index has surged around 7% as the U.S. economy has shown no signs of slowing down.
On Tuesday, U.S. yields shot higher after data showed retail sales increased strongly, which had helped the dollar pile pressure on the Japanese yen, where ultra-loose monetary policy is suppressing returns on bonds.
The yen was last up slightly at 149.69 to the dollar. The Bank of Japan on Wednesday unexpectedly announced $2 billion in bond-buying to keep downward pressure on yields.
Source : Reuters
