Risk-sensitive currencies such as the Australian dollar and the Chinese yuan jumped while the safe-haven yen fell slightly today after Chinese real estate developer Evergrande said it would pay off its bond coupons in yuan, easing fears of a default.
But some enthusiasm faded after traders realized that it was not yet clear how the company would be able to pay the coupons on its dollar bonds abroad, which expire on Thursday.
The Australian dollar rose 0.49 percent to $0.7268 before giving up some gains to trade at $0.7247, up 0.2 percent on the day.
The yen fell about 0.2 percent to 109.43 against the dollar, as it was little affected by the Bank of Japan’s decision to keep the interest rate unchanged.
According to “Reuters”, the dollar index recorded 93.226 in early trading in London, hovering within a range not far from the highest level recorded in a month on Monday at 93.455.
The euro was trading at $1.1725, after settling at a one-month low of $1.1700 on Monday.
The euro fell to its lowest level in seven months against the Japanese yen to 127.93 yen as the Japanese currency gained support from the cautious sentiment dominating the sentiment.
The Chinese yuan was stable and rose slightly to 6.4748 against the dollar in offshore trade, up from a one-month low of 6.4878 reached on Monday.
As for other currencies, there was little change in the Canadian dollar, which retained its record gains on Tuesday after the victory of the Liberal Party led by Prime Minister Justin Trudeau in a close election.
Cryptocurrencies rose after falling in the previous session.
And the bitcoin rose five percent to 42,754 dollars, after recording its lowest level in a month and a half at 39,573 dollars.
The cryptocurrency Ether rose 6 percent to $2,950, after falling to $2,732, down more than 30 percent from its four-month high earlier this month.