Yuan stands tall but U.S. stimulus doubts cap broader risk rally

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The yuan held near a two-year high against the dollar in offshore trade on Tuesday on signs of a robust economic recovery in China however, doubts about a U.S. stimulus deal capped gains for other risk currencies.

FILE PHOTO: A clerk of ICBC bank counts Chinese one hundred Yuan Banknotes at its branch in Beijing, China, April 13, 2016. REUTERS/Kim Kyung-Hoon

However, broader confidence was later dented by a fall in U.S. share prices as investors grew cautious about prospects of a stimulus deal in Washington. “Although Pelosi has set a Tuesday deadline for a deal, it does not seem like she has a clear conviction that there will be an agreement,” said Shinichiro Kadota, senior strategist at Barclays.In early Tuesday trade, the euro held firm at $1.17695, holding a 0.44% gain made on Monday. The dollar traded little changed at 105.46 yen.

 

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