The U.S. dollar steadied on Tuesday in Asia after the International Monetary Fund (IMF) cut its 2019 and 2020 global growth forecasts overnight.<\/p>\n
The IMF now projects a 3.5% growth rate worldwide for 2019 and 3.6% for 2020. These are 0.2 and 0.1% points below its last forecasts in October.<\/p>\n
The fund cited China-U.S. trade disputes, a renewed tightening of financial conditions, a \u201cno deal\u201d Brexit and a deeper-than-anticipated slowdown in China as the reasons for the downgrade.<\/p>\n
The news came just hours after China reported its slowest quarterly economic growth since the financial crisis on Monday.<\/p>\n
China’s\u00a0<\/span>economy<\/a><\/span>\u00a0<\/span>grew 6.4% in the fourth quarter of 2018 from a year earlier, as expected, official data from the National Bureau of Statistics showed on Monday. The growth was slower than the previous quarter’s 6.5% growth.<\/p>\n Full-year growth for 2018 came in at 6.6%, also in line with expectations.<\/p>\n The\u00a0<\/span>U.S. dollar index<\/a><\/span>\u00a0<\/span>edged up 0.1% at 96.058 on Tuesday following the news.<\/p>\n Traders are also awaiting further news on the U.S.-China trade development, as Chinese Vice Premier Liu He is set to visit the U.S. on Jan. 30 and 31 for a new round of trade talks.<\/p>\n The Japanese yen, another safe-haven currency, also rose on Tuesday as the\u00a0<\/span>USD\/JPY<\/a><\/span>\u00a0<\/span>pair lost 0.2% to 109.43.<\/p>\n Meanwhile, the\u00a0<\/span>Chinese yuan<\/a><\/span>\u00a0<\/span>was up 0.2% to 6.8022 as the People’s Bank of China set the yuan reference rate at 6.7854 vs the previous day’s fix of 6.7774.<\/p>\n Analysts at\u00a0<\/span>Morgan Stanley\u00a0<\/span><\/span><\/span>(NYSE:MS<\/a><\/span>) said in a Reuters report last week that they had turned bullish on the yuan, as they believed the People’s Bank of China (PBOC) would refrain from intervening during trade talks.<\/p>\n Companies would also sell more dollars to buy yuan ahead of the upcoming Lunar New Year payments, the analysts added.<\/p>\n Elsewhere, the\u00a0<\/span>AUD\/USD<\/a><\/span>\u00a0<\/span>pair and the\u00a0<\/span>NZD\/USD<\/a><\/span>\u00a0<\/span>pair slipped 0.3% and 0.1% respectively.<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar steadied on Tuesday in Asia after the International Monetary Fund (IMF) cut its 2019 and 2020 global growth forecasts overnight. The IMF now projects a 3.5% growth rate worldwide for 2019 and 3.6% for 2020. These are 0.2 and 0.1% points below its last forecasts in October. Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[9,10,1],"tags":[],"class_list":["post-1195","post","type-post","status-publish","format-standard","hentry","category-homepage","category-latest-news","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/comments?post=1195"}],"version-history":[{"count":1,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1195\/revisions"}],"predecessor-version":[{"id":1196,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1195\/revisions\/1196"}],"wp:attachment":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/media?parent=1195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/categories?post=1195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/tags?post=1195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}