Tokyo, May 31 (BNA): The Australian and New Zealand dollars fell alongside the yuan on Wednesday after a sudden deterioration in Chinese factory activity raised concerns about the country’s faltering post-pandemic recovery.
Traditional safe haven currencies such as the dollar and yen outperformed the euro and pound sterling. The yen received additional support after Japan’s top currency diplomat warned on Tuesday that officials were closely watching the currency after it plunged to a six-month low, raising the specter of intervention, Reuters reported.
Meanwhile, the Turkish lira hit a record low after President Recep Tayyip Erdogan won a run-off election to extend his rule for a third decade.
The Australian dollar suffered a roller coaster ride after hot domestic inflation data and the simultaneous release of disappointing Chinese PMI surveys.
The Aussie initially jumped as much as 0.33% on rising prospects for further central bank tightening, only to flip back to 0.38% lower on mounting fears of a slowdown in China. That later deepened to a decline of 0.46%, reaching its lowest level since November 10 at $0.6486.
MI