Dollar falls to one-year low as China recovers

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The Independent Online

The dollar fell to a one-year low against a basket of currencies yesterday as strong Chinese economic data buoyed belief that the global economy was recovering, tempting investors towards perceived higher-risk currencies.

Sterling hit a one-month high against the greenback of $1.6742, thanks to the shift to risk and by the view that the Bank of England's decision to keep monetary policy unchanged suggested the UK economy may be stabilising. The move took the pound's gains against the dollar to more than 2 per cent this week. Gold also passed the $1,000-per-ounce level once more, touching $1,010.6 as the dollar fell.