China'S Decision To Raise Interest Rates Has Weighed On &Nbsp; The US Dollar Fell On Monday.

Beijing time on the morning of December 28th,

At the close of the foreign exchange market, the US dollar index for tracking six major currencies was 80.34 points, or 0.20%.

The euro rose to $1.3143 on Monday, or 0.23%, while the US dollar against Japanese yen was 82.83 yen, or 0.06%, on Monday.

On Saturday, the people's Bank of China announced a 0.25 percentage point increase in the main lending rate.

This is the second time in 10 weeks that the Chinese government has adopted a monetary policy tool to cool credit expansion and deal with inflationary pressure this year to slow down economic growth.

Market participants generally expect that China will take this measure at the latest and early in the year, which makes the decision of the Chinese government more or less unexpected.

Casey lien, director of GFT monetary research, believes that before China's latest interest rate rise decision, traders generally worry that China's decision will not only slow down China's economic growth, but also drag the global recovery.

However, this concern has not lasted for a long time. Investors continue to pfer assets to relatively high-risk asset classes rather than relatively safe dollar assets.

"This shows that China's interest rate increase has limited impact on the foreign exchange market today."

The US financial markets closed on Christmas holidays last Friday, while the London market returned to normal after Wednesday.

Since December, the US dollar index has fallen by 1%, and this year it has risen by 3.2%; the euro has risen 1% this month, down by more than 8% in 2010; the US dollar against the yen fell 0.9% this month, and has fallen by nearly 11% this year.