LONDON—Risk-sensitive currencies such as the Australian dollar and Chinese yuan jumped and the safe-haven yen eased slightly on Wednesday after Chinese property giant Evergrande said it would make an upcoming yuan bond coupon payment, allaying immediate fears of a default. Some of the excitement fizzled, however, after traders realised it was still not known whether the developer would be able to pay the coupon on its offshore dollar bonds, due on Thursday. The Australian dollar rose as much as 0.49 percent to $0.7268 before giving up part of the gains to trade at $0.7247, up 0.2 percent on the day. The yen weakened about 0.2 percent to 109.43 to the dollar, showing little reaction to the Bank of Japan’s decision to keep policy on hold. “Risk assets are navigating calmer waters this morning, as the reopening of Chinese markets after a four-day holiday saw the People’s Bank of China pump …
Risk-Sensitive Currencies Perked up by Evergrande, Dollar Anchored Before Fed
September 22, 2021
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