The U.S. dollar recovered some of its recent losses during Thursday’s Asian session as fallout from Federal Reserve Chair Janet Yellen’s speech sent the dollar index 0.3 percent higher to 101.22 .DXY. The dollar was unable to hold on to all of its early-session gains, though it was able to remain above Wednesday’s lows. The dollar traded at 114.48 yen during Thursday’s Asian session.
The euro remained relatively steady on Thursday, up 0.1 percent to $1.0641, while the British pound held similar gains, to trade at $1.2275.
Asian shares slumped on Thursday in advance of Donald Trump’s inauguration, as traders preferred to take profits before the event. Hong Kong’s Hang Seng index dropped 0.6 percent while the Shanghai composite was 0.1 percent lower. The MSCI’s broadest index of Asia-Pacific shares outside of Japan was down 0.4 percent on Thursday.
The Chinese New Year is quickly approaching, which tends to make the markets less liquid than usual. Short-term funding costs in China were at their highest in nearly 10 years on fears that liquidity would decrease in the coming years. China also announced on Thursday that it is willing to work with the new U.S. presidential administration to create a healthy relationship between the countries. The Ministry of Commerce expressed hope that an open dialogue would resolve trade disputes stirred up by Donald Trump’s controversial statements with regard to China.