The dollar held steady as investors weighed U.S.-Iran tensions and U.S. midterm elections. The Australian dollar fell after the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85%, while the yuan weakened after China raised foreign-currency reserve requirements.
The dollar held steady as investors weighed uncertainty over U.S.-Iran tensions and U.S. midterm elections. The euro traded at $1.1178, the pound at $1.3410, and the yen weakened to 157.82 per dollar. A slump in AI-related shares added to investor unease, while polls and nonpartisan analysts suggested Democrats could retake the House; control of the Senate remained uncertain.
China's yuan weakened after the central bank raised the amount of foreign currency financial institutions must hold as reserves, a move traders and analysts saw as an attempt to slow the currency's recent gains. The dollar rose 0.4% against the yuan to 6.6765, its biggest daily jump since March. The Australian dollar fell as much as 0.5% and was last down 0.24% at $0.6981 after the RBA raised its cash rate by 25 basis points to 4.85%, as expected. A 6-3 vote raised doubts about further increases.
The Swiss franc briefly strengthened after annual inflation accelerated to its highest level in nearly three years in October, driven by higher petrol prices, but it later gave back those gains. The dollar was last 0.16% higher at 0.8199 francs.
