The dollar strengthened against the yen, euro, and sterling, as investors looked to the resilient US economy for support. China’s onshore yuan also reached a 16-year low due to a property slump, weak consumer spending, and shrinking credit growth. The US dollar rose 0.1% against a basket of currencies and reached a six-month high after the US services sector showed unexpected growth in August. The Federal Reserve’s “Beige Book” report revealed modest economic growth in recent weeks, subdued job growth, and slowed inflation in most parts of the country. Market expectations suggest a more than 40% chance of another rate hike in November. Meanwhile, the onshore yuan hit its weakest level since December 2007. China has implemented various policy measures to help its stumbling economy recover from the effects of the pandemic, but investors are still waiting for further support measures to revive market confidence. Data showing a lower-than-expected fall in China’s exports and imports in August did little to improve investor sentiment. The Australian and New Zealand dollars, both often used as proxy currencies for the yuan, remained near their recent 10-month lows. The euro also saw losses against the dollar and the European Central Bank (ECB) warned that a rate increase next week is still uncertain. In Japan, the yen struggled against the dollar, and officials increased their warnings against a sell-off. The sterling also declined, with Bank of England (BoE) Governor Andrew Bailey indicating that the central bank was nearing the end of its rate-hike cycle. The BoE is expected to raise rates on September 21.