Since the euro carries a big weight in the dollar index, it will affect the dollar a lot if the currency sours or plummets.
The offshore yuan was trading near the onshore spot at 6.8805 per dollar.
The global dollar index was barely changed at midday, having risen to 99.819 from the previous close of 99.778.
Negative number indicates that spot yuan is trading stronger than the midpoint.
OFFSHORE CNH MARKET Instrument Current Difference from onshore Offshore spot yuan 6.8805 0.00% <CNH=> * Offshore 7.0635 -2.57% non-deliverable forwards <CNY1YNDFOR=> ** *Premium for offshore spot over onshore <CNY=CFXS> **Figure reflects difference from PBOC’s official midpoint, since non-deliverable forwards are settled against the midpoint.
FOREX-Euro dips with French election in focus; dollar firms
As it stated in The dollar index, which tracks the U.S. currency against a basket of six major rivals, was up 0.18 percent at 99.954.
The euro was down 0.2 percent against the dollar at $1.0693, close to the session’s low.
“Hedges have appreciated so much in the last week or so that some folks are comfortable taking a little bit off.”
While the risk of a knee-jerk move one way or the other remained high, the euro was still on pace for its best week in 11 against the dollar.
[nU8N1D302M] [nL8N1HS760] “We did see a decent amount of unwinding of some hedges,” said Brad Bechtel, managing director FX at Jefferies in New York.
REFILE – CLARIFYING CURRENCY U.S. dollar and Euro notes are seen in this November 7, 2016 picture illustration.
The dollar index, was up 0.06 percent at 99.796, after hitting a more than three-week low of 99.374 earlier in the session.
The euro was up 0.09 percent against the dollar at $1.0719 after hitting a three-week high of $1.0777 earlier in the session.
Traders were taking their cues from polls showing French centrist Emmanuel Macron easily beating far-right candidate Marine Le Pen in the second round two weeks later, analysts said.
Pollsters forecast the most likely outcome of the first round is that Macron will go head-to-head against Le Pen in the May 7 second round.