Dollar struggles as carry trades flourish

London

THE US dollar held at a 10-month low against a basket of currencies while high-yielding currencies such as the Australian dollar rose to two-year peaks as investors piled into leveraged bets after data dampened expectations of a US rate hike in coming months.

Some of the biggest gains were seen in the yen crosses such as sterling, earlier in the day after Chinese economic data topped expectations, though some profit taking set in at higher levels.