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    Dollar holds onto gains versus rivals

    The dollar held onto gains against the other major currencies on Tuesday, after data showed that a slowdown in China’s fourth-quarter growth matched expectations and as the International Monetary Fund cut its global growth forecast.

    USD/JPY gained 0.51% to 117.92, off overnight lows of 117.22 and Friday’s four-and-a-half month trough of 116.50.

    EUR/USD slipped 0.21% to trade at 1.0870.

    Meanwhile, the dollar slipped lower against the Swiss franc, with USD/CHF down 0.10% to 1.0043. The Australian dollar rose sharply after the Chinese data, with AUD/USD up 1% at 0.6834, while NZD/USD advanced 0.48% to trade at 0.6484.

    The Sterling pound hit its weakest level since March 2009 against the dollar, after the Governor of the Bank of England, Mark Carney, said that he had “no set timetable" for interest rate rises, as he first wanted to see stronger growth and inflation. He also made reference to "political uncertainty" and  warned on the spillover effects of a slowing Chinese economy.

    Sterling was boosted earlier, by a slightly higher than expected print of the UK inflation, after the U.K. Office for National Statistics said the consumer price index rose 0.1% in December, while the annual rate of inflation rose 0.2%, the highest since January 2015. The sterling pound fell 0.18% against the dollar on the day, hitting a seven-year low, with GBP/USD  trading at 1.4217, re-approaching Friday’s five-year lows of 1.4247.

    The commodity-related Canadian dollar continued to trade lower due to the ongoing oil rout, with USD/CAD down 0.57% at 1.4477, but remained within close distance of a nearly 13-year high of 1.4653 hit overnight.

    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.22% at 99.38, the highest level since January 6.

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