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The dollar was pinned below recent highs on Wednesday by a decline in real yields and by trepidation ahead of a Federal Reserve meeting, while other safe-haven currencies were in favor following an unnerving plunge in Chinese equity markets.
The Japanese yen rose about 0.5% on the dollar overnight to touch a one-week high, while the Swiss franc and euro also rose a little. Each held on to their gains at the beginning of the Asia session, with the yen last trading at 109.85 per dollar and the euro at $1.1819.
The Chinese yuan teetered near a three-month low at 6.5180 per dollar after logging its worst day since October on Tuesday, while the risk-sensitive Australian and New Zealand dollars also nursed losses as sentiment took a hit.
Hong Kong’s Hang Seng Index suffered its sharpest selloff in more than a year on Tuesday amid growing fears about a Chinese government crackdown on tech and other…