On Tuesday, the dollar fought for support, and the Chinese yuan found its bottom when investors cut rates on whether rising US interest rates would lead to further growth in the dollar.

This week, the dollar fell from a 20-year high and was slightly softer at the beginning of trading in Asia, while yields on US bonds fell slightly as traders believe aggressive short-term increases will lead to long-term US growth.

The euro rose about 0.1% against the dollar to $ 1.0446, while the Australian and New Zealand dollars rose about 0.1% and are at a multi-year low.

The Chinese yuan was stable at 6.7953 per dollar in offshore trading and seems to have found a base after falling more than 6% for the month.

Hopes to end the strict closure in Shanghai due to COVID-19 have offset the poor April economic data, and traders are also encouraged by additional signs of political support.

China cut mortgage rates for first-time home buyers last weekend, and sources told Reuters on Monday that authorities had asked some financially sound developers to sell bonds to boost market sentiment.

“The dollar / CNH has been a major driver of the G10 currency,” said Chris Weston, head of research at Pepperstone Brokerage in Melbourne, referring to offshore yuan.

He added that the pause in its decline, as well as calming the volatility of markets as a whole halted the growth of the dollar.

“Much has been appreciated and we are not receiving any new news from Fed officials,” he said. “I think at the moment people are just taking some of that money off the table.”

Sterling jumped about 1.5% from the two-year hold and was stable at $ 1.2328 on Tuesday.

The yen stands at 129,115 and holds above two decades.

The U.S. dollar index fell slightly to 104,100 and is about 0.8% below Friday’s 20-year peak at 105,100.

Global interest rate expectations are also becoming more serious.

The gap between the 10-year real yields of Germany and the US narrowed this month by more than 30 basis points, and the central banks of the UK and Australia raised rates.

Minutes of the May meeting of the Reserve Bank of Australia are due to take place later that day, as well as public speeches by several Federal Reserve officials, including Chairman Jerome Powell at 6pm GMT.

The last time the Australian dollar was $ 0.6976 and the New Zealand dollar was $ 0.6309.

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