The U.S. dollar stayed mostly down in negative territory on Wednesday amid speculation the Federal Reserve will likely announce further monetary easing in the foreseeable future to offset the impact of trade war and boost the economy.
The dollar index, which dropped down to a low of 97.31, recovered to 97.62, down just marginally from previous close.
Against the euro and pound sterling, the dollar stayed below the flat line for much of the session today.
In eurozone economic data, a report released by Destatis showed Germany's industrial output fell by a larger than expected 1.5% in June 2019, over the previous month. Economists had forecast industrial production to fall 0.5% on month, reversing a 0.3% rise in May.
Year-on-year, industrial production declined at a faster pace of 5.2% after easing 4.4% a month ago. Economists had forecast 3.1% decrease.
The Japanese yen and Swiss franc were the ones that stayed steady during the day, with their safe haven appeal wooing traders to the counters.
The yen was up sharply at 105.71 a dollar early on in the day, but pared gains as the day progressed and was up about 0.4% at 106.00 around late afternoon.
The Swiss franc moved up more than 0.35% to 0.9728 against the dollar.
The People's Bank of China set its reference rate for the yuan below the psychologically important 7-per-dollar level. Investors welcomed indications of China stepping in to steady the yuan that could prevent the trade war from turning into a currency war.
Speaking to CNBC, President Donald Trump's top economic adviser Larry Kudlow said that the U.S-China trade talks are likely to resume in September.
The U.S. is willing to negotiate, he said, adding that the President and his team is planning for a Chinese visit in September.
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Forex News
December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.