Dollar mixed amid China rates hike

09:27, February 09, 2011      

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The U.S. dollar traded mixed against major currencies in late New York trading on Tuesday as China's central bank decided to raise interest rates for the third time since last October.

The People's Bank of China said on Tuesday it would raise both its lending and deposit rates by a quarter of a percentage point, effective on Wednesday, which encouraged the expectation of the dollar's depreciation.

Meanwhile, the euro's rebound against the dollar in early trading session was snapped after Germany's economy ministry said on Tuesday that the country's industrial output fell unexpectedly in December.

The data showed a 24.1-percent plunge in construction activity, which was the worst performance since 2000, mostly due to the extreme winter weather.

The British government announced on Tuesday it would impose an extra 800 million pounds of tax on banks this year. The pound was hurt by the news and fell to below 1.610 against the dollar in late trading session.

The dollar index rose to near 78 in late trading session on Tuesday.

In late Tuesday trading, the dollar bought 82.38 yen, comparing with 82.29 late Monday, and the euro rose to 1.3627 dollars from 1. 3591.

The British pound fell to 1.6057 dollars from 1.6121. The dollar rose from 0.9552 to 0.9634 against the Swiss franc, and also rose to 0.9960 Canadian dollars from 0.9903.

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