The dollar slipped against a basket of major currencies on Tuesday on continued expectations that the Fed will not hike this year.
Some big central banks are meeting with China being a big focus. Seema Mody reports.
China's Yuan became the fourth most-used world payment currency in August, overtaking the Japanese Yen, global transaction services organization SWIFT said on Tuesday.
Doomsday scenarios of a hard-landing in China may have transfixed market watchers, but the IMF remains relatively sanguine on the economic outlook.
The U.S. dollar rose against a basket of major currencies on renewed risk appetite.
Chinese outbound tourism and outbound investment trends are highly correlated, says Henry Chin, head of research for Asia-Pacific at CBRE Asia-Pacific. The top investment destinations include the U.K. and the U.S.
The euro reversed earlier losses to trade sharply higher on Friday after the September jobs report widely missed expectations.
The yen and euro came under pressure on Thursday, as stock markets edged higher after their worst quarterly performance in four years.
The euro lost ground on Wednesday on data showing euro zone inflation dipped back into negative territory in September.
The yen and Swiss franc were the winners on Tuesday as risk aversion swept global markets, underpinning flows into safe haven currencies.
The Chinese yuan could weaken to 6.55 against the dollar by year-end due to the impact of the strong exchange rate on inflation and profits, says Roy Teo, Senior FX Strategist at ABN Amro.
The fact that industrial profits remained weak in August after a series of support measures from Beijing is worrying, notes Ronald Wan, Chief Executive of Investment Banking at Partners Capital International.
The dollar rallied after U.S. Federal Reserve Chair Janet Yellen left the door open to a hike in interest rates later this year.
Hot money may be flowing out of China's markets amid a persistent economic slowdown, but slower moving institutional money is taking a longer view.
The U.S. dollar extended its decline against the euro on Thursday.
Jeremy Stretch, head of FX strategy at CIBC, says the rally in the U.S. dollar may hit some speed bumps after the Fed unveils its first interest-rate rise.
Benjamin Pedley, head of investment strategy, Asia at HSBC, explains the "slight misconception" that the U.S. has toward China's currency devaluation on August 11.
On the numbers, China's cinema-goers look like a sure bet, but investors may need to look under the hood.
Paul Pong, managing director of Pegasus Fund Managers, likes military stocks because China will likely increase its military budget. He also thinks the 'One belt, one road' initiative will lift sectors such as infrastructure.
The dollar slipped against the euro on Wednesday after Mario Draghi said the ECB needed more time to assess whether to boost QE.