November 16, 2021

Dollar Firms as Chinese 3Q Growth Disappoints; Bailey Speech Supports GBP

By Geoffrey Smith — The dollar opened the week higher on a fresh bout of global risk aversion as data showed the Chinese economy slowed by more than expected in the third quarter.

By 3 AM ET (0700 GMT), the dollar index that tracks the greenback against a basket of advanced economy currencies was up 0.2% at 94.15, with its biggest gains against commodity currencies such as the Aussie, and against the Korean won.

Figures out of Beijing indicated that gross domestic product growth slowed to only 4.9% in the quarter, thanks to a wave of Delta-variant Covid-19 that forced the country into its most aggressive lockdowns since early 2020.

People’s Bank of China Governor Yi Gang was reported as saying that the risks from the slowdown were controllable, but the numbers provoked fresh unease, with investors mindful of the ongoing credit crisis in the real estate sector, which…

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