US dollar index slips after upbeat China GDP data; euro, pound rise

The US dollar fell against most major currencies on Tuesday after better-than-forecast growth data from China, while strong pay figures from Britain supported the pound.

China's gross domestic product (GDP) grew 4.5 per cent year on year in the first three months of the year, data showed after the end of COVID-19 restrictions lifted the world's second-largest economy.

Separate data on March activity in China also showed retail sales growth quickened to 10.6 per cent, hitting a near two-year high, while factory output growth also sped up but below expectations.

The euro rose 0.38 per cent to $1.0968 after two consecutive daily declines of more than 0.5 per cent, while the dollar index, a measure of the greenback against six major currencies, slid 0.362 per cent. The index rose over 1 per cent in the last two trading sessions.

China's offshore yuan rose 0.02% to $6.8824 per dollar.

Britain's pound jumped despite an unexpected rise in the unemployment rate in the three months to February as pay growth stayed higher than forecast, which could prompt the Bank of England to hike its interest rate again in May.

Sterling was last trading at $1.2427, up 0.43 per cent on the day.

The Australian dollar rose 0.39 per cent versus the greenback to $0.673 after Reserve Bank of Australia (RBA) minutes showed the central bank considered an 11th consecutive rate hike in April before deciding to pause.

The RBA, however, said it was ready to tighten further if inflation and demand failed to cool.

The yen strengthened 0.32 per cent to 134.05 per dollar.

The Mexican peso lost 0.21 per cent versus the dollar at 18.05 while the Canadian dollar fell 0.01 per cent versus the greenback to 1.34 per dollar.

The Indian rupee depreciated 3 paise to close at 82.04 against the US dollar on Tuesday, tracking negative sentiments in the domestic equities market and foreign fund outflows.

Forex traders said a weak greenback against major currencies and falling crude prices, however, resisted the fall in the domestic unit.

With Agencies Inputs