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01.11.2018 / 07:31

China Consider to Halted Purchases of US Treasurys

The U.S. dollar on Wednesday weakened against its major rivals, after an unconfirmed report that China is considering slowing or halting purchases of U.S. Treasurys. The news helped to stoke jitters about holding on to U.S. assets such as government bonds and the greenback, market participants said. Officials in China, the world’s second-largest economy, are reviewing the country’s foreign-exchange holdings and weighing whether to taper or end its purchases of U.S. Treasurys and other assets, Bloomberg reported on Wednesday. The report, without naming sources, said the market for U.S. assets, notably bonds, is becoming less attractive and that trade tensions with the U.S. “may provide a reason to slow or stop buying American debt.” China has historically been among the biggest holders of U.S. debt. Dalam data ekonomi, the data calendar was rather light on Wednesday morning. Import prices rose 0.1% in December. Wholesale inventories grew 0.8% in December, up from a 0.4% decline in the previous month.

The ICE U.S. Dollar Index a measure of the dollar against a basket of six rivals, shed 0.2% at 92.319, clawing back some of its losses and lifting from session lows, which had put it to the weakest level since around September, according to FactSet data. The dollar gauge, which has been enjoying a modest uptrend, on Tuesday reached its highest level since Dec. 28. Meanwhile, The WSJ Dollar Index which gauges the greenback against a basket of 16 currencies, was down 0.3% at 85.75, also retracing some of its drop. The dollar declined against the Japanese yen last buying ¥111.34, compared with ¥112.65 late Tuesday in New York, marking its highest level since late November. The euro trended higher against the dollar, moving above the psychologically important $1.20 level earlier in the session. However, the pair last traded at $1.1958, still up from $1.1937 the previous day. Britain’s pound was lower at $1.3509, compared with $1.3539. The dollar fetched 0.9778 Swiss francs versus 0.9831 on Tuesday.