DOLLAR STRUGGLES
And despite uncertainty over Brexit, the pound is also sitting around levels against the dollar last touched in June 2016, when Britain voted to leave the European Union.
Stephen Innes, head of Asia-Pacific trading at Oanda, warned the greenback could face further selling.
“With the dollar trading ‘three sheets to the wind’ and ‘wobbling like a drunken sailor’, there is a stronger chance that panic dollar selling will ensue and hammer the dollar lower,” he said.
The yuan extended Monday’s advance that followed news Germany’s central bank would include the Chinese currency in its own reserves, the latest step towards its internationalisation.
The currency is at a two-year high after Bundesbank board member Andreas Dombret’s comments. The announcement follows the International Monetary Fund’s decision in 2016 to include the yuan in its elite basket of currencies.
