Sources
Loading...
Additional media
Loading...
DeepNewz, mobile.
People-sourced. AI-powered. Unbiased News.
The Chinese yuan is nearing the weak end of its onshore trading band, showing signs of weakness despite recent upbeat economic data. China's FX policy is under scrutiny as the onshore spot approaches the band edge and the offshore CNH is outside the band, prompting potential adjustments by the PBOC. The yuan has fallen to its lowest level against the U.S. Dollar since November, with implications for major policy decisions and the need to defend the weak edge of the band. The current volatility was triggered by state banks allowing the CNY to move inside the band two weeks ago, leading to concerns about capital outflows and pressure from a strengthening U.S. Dollar.
🇨🇳 #China | #Yuan Sinks Toward Limit of Allowed Range, Risking #PBOC Pushback – Bloomberg https://t.co/EDAeiuEoZf https://t.co/6URWY15z3l
There is sometimes a perception that the yuan is strong -- and that currency is no longer a source of China's trade outperformance. That's not really the case. The yuan isn't being held down via intervention, but it is clearly weak ... sort of like in the 01-06 period 1/2 https://t.co/MmKBFB0EOP
To nitpick just a bit, the current volatility was triggered when the state banks let the CNY move a bit inside the band 2 weeks ago -- And weirdly, the PBOC balance sheet data does NOT show PBOC resistance to CNY weakness right now. 1/2 https://t.co/Dkn1oogS7b https://t.co/KwsyyIXm11
