SHANGHAI, Aug 28- China's yuan rose sharply against the dollar on Friday, with traders citing large transactions by state-owned banks on behalf of the central bank to support the currency. "There were clear signs that the central bank was continuing intervening in spot trading to support the yuan," said a dealer at a major European bank in Shanghai.» Read More
The dollar fell on Tuesday on disappointing U.S. durable goods and home price data ahead of a Federal Reserve policy meeting.
The euro recovered lost ground in rangebound trade on Monday, boosted by weaker-than-expected U.S. housing data.
The euro rallied on Friday ahead of an official report on the health of the euro zone's main banks as investors covered short-positions.
The dollar rallied on Thursday as investors plowed cash back into riskier asset classes, with an underpinning of promising data.
The US dollar extended broad-based gains on Wednesday after slightly higher-than-expected US inflation data and amid concerns over European banks.
The euro fell sharply against the dollar on Tuesday after Reuters reported the European Central Bank was looking at buying corporate bonds.
Major currencies traded in tight ranges on Monday with investors facing a vacuum of data and modest price changes in global markets.
China is set to unveil key legal reforms, in a step closely watched by companies hoping for a more impartial legal system.
The PBOC plans to inject about $32.66 billion of loans into select listed banks to keep liquidity ample and support the economy, sources told Reuters.
The U.S. dollar edged higher against a basket of major currencies on Friday after strong data on U.S. consumer sentiment calmed nerves.
The U.S. dollar recovered against a basket of major currencies on Thursday on the view that Wednesday's selloff was overdone.
The U.S. dollar hit a three-week low against the euro and a more than one-month low against the yen on Wednesday.
The U.S. dollar recovered against a basket of major currencies on Tuesday after worrying economic data came out of the euro zone and United Kingdom.
The US dollar fell against a basket of major currencies on Monday on concerns that the Fed may delay its first interest rate hike.
China Premier Li's trip to Moscow is expected to net as many as 50 trade deals, as sanctions spur Russia to accelerate ties with the mainland.
The dollar firmed for a second straight session on Friday after three days of losses, bolstered by worries about the health of the global economy.
Following the Fed's warning of a strong dollar, investors are reassessing the timing and size of a rate hike, according to currency strategists.
The dollar tumbled to a three-week low against the yen on Thursday as investors continued to pare back bullish bets on the greenback.
The dollar fell to a two-week low against the euro on Wednesday after the minutes of the latest Fed meeting focused on risks to the U.S. economy.
The dollar fell to a three week-low against the yen on Tuesday, retracing most of its gains posted last week.