The US dollar continued to rise higher during the European session, with rising support from demand flows as a safe-haven and better expectations ahead of the outcome of the Federal Reserve (Fed) policy meeting on Thursday.
Evergrande, China’s second -largest real estate firm has sunk shares in Asian markets into the red ocean and raised market concerns that the financial problems the company is facing will bring a bigger crisis to global growth.
With $ 300 billion in debt, Evergrande says it will start paying investors with properties that resulted in massive sales by other developers and its lenders.
This sentiment also supports the safe-haven yen to trade higher against most other major currencies.
The dollar index maintained its strength by trading at a one -month high of 93.35 against its main competitor.
Positive expectations for the Fed to begin reducing asset purchases this year continue to support U.S. dollar trading to rise higher, though details about it may not be disclosed at this week’s meeting.
The gloom in Asian markets has added pressure on risk -sensitive currencies, the Aussie dollar and the kiwi which have also been affected by strong greenback trading. After five weeks of closure, sanctions measures in Auckland will enter phase four as case figures continue to show a decline.
The euro is on the verge of a one -month low, after being pushed lower by the US dollar. The release of European Zone manufacturing and services PMI data this week will be a driver for the euro in addition to the Fed’s policy announcement.
