Investors in the European session saw a continued recovery exhibited by several major currencies that bounced back from slumps earlier in the week.
The issue of Evergrande is seen to have begun to subside, but there is still pressure for the yuan to continue trading lower.
China is still on holiday today, leaving all eyes now focused on the People’s Bank of China (PBOC) meeting on Wednesday to see what steps will be taken to address the Evergrande issue.
The US dollar continued to depreciate, but not far from the one -month high it had reached before. The dollar index, which measures the strength of the greenback against a basket of major currencies, traded slightly lower at 93.18.
The Federal Reserve (Fed) will begin a two -day policy meeting on Tuesday, with its decision to be released on Wednesday (early Thursday morning Malaysian time).
This has caused investors to start taking precautionary measures ahead of the meeting which is the main focus of the market this week.
Risk -sensitive currencies, the Aussie dollar and the kiwi took advantage of the weak US dollar to bounce back from previously recorded lows. While the minutes of the Reserve Bank of Australia (RBA) meeting showed interest rates and other stimulus would last longer but the Aussie dollar ignored the dovish view.
The New Zealand dollar also reacted little to a statement by the central bank's assistant governor, Christian Hawkesby, who said interest rates were likely to remain or rise by only 25 basis points compared to the initial consideration for a 50 basis point increase.
Meanwhile, the euro did not change much, remaining trading around 1.17300 against the US dollar.
