This Wednesday, currencies are moving in the green. While the Australian and New Zealand dollars hit new highs, the South African rand South Africa reached its highest level in 20 months. The rupee is expected to rise again while the Chinese yuan briefly crosses the key mark of 7 to the dollar

Australian and New Zealand dollars hit multi-month highs on Wednesday, while the yuan hit its highest level in over a year as China's aggressive stimulus package provided a final boost to risk appetite. The Australian dollar then cut some of its gains after data released on Wednesday showed that domestic consumer prices slowed to a three-year low in August, while core inflation hit its lowest level since early 2022. According to Carol Kong, a currency strategist at the Commonwealth Bank of Australia, “the New Zealand dollar actually performed best among its G10 peers, and I think that's because market players think that the measures announced yesterday support consumer demand and that's therefore generally a good sign for demand for New Zealand dairy exports

The South African rand continued its recent recovery on Wednesday, strengthening to reach its highest level in 20 months against the dollar. At 0810 GMT, the rand traded at 17.22 against the American currency, 0.3% more than its previous close and its highest level since early February 2023

The Indian rupee is expected to open higher on Wednesday, boosted by the general rise in Asian currencies following measures taken by China to support the economy and by the increased chances of the Federal Reserve opting for another aggressive rate cut. The rise in the rupee stopped on Tuesday due to purchases of dollars by a major company and other importers, as well as capital outflows related to the MSCI rebalancing that occurred

The Chinese yuan hit a new 16-month high on Wednesday and briefly crossed the key level of 7 to the dollar at sea, supported by investor optimism around the widespread easing measures announced the day before to support a struggling economy. The offshore yuan crossed the important threshold of 7 yuan to the dollar for the first time since May 2023, reaching a high of 6.9952 yuan to the dollar during the first Asian transactions. It was last traded at 7.0142 yuan per dollar at 03:03 GMT