Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Yuan Advances to Record Versus Peers Before New Year Holiday

Forex Jan 25, 2022 03:56
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

(Bloomberg) -- The onshore yuan rose to an all-time high versus the currencies of China’s major trading partners, in another sign that the authorities are easing their grip on the exchange rate.

Bloomberg’s real-time replica of the CFETS yuan index climbed to 103.47 on Monday, the highest ever in data compiled by Bloomberg going back to 2007. It traded around 103.38 on Tuesday.

The yuan has charged ahead even as China’s monetary easing narrows its yield advantage over the U.S. A hefty trade surplus and strong seasonal demand for the currency are fueling the gains, and the authorities have indicated they won’t stand in the way of an advance.

“The authorities have been more tolerant of yuan strength than we expected, but we still see this as being seasonal demand driven ahead of the Lunar New Year and the gains can retrace after that,” said Eddie Cheung, a senior emerging-markets strategist at Credit Agricole (OTC:CRARY) CIB in Hong Kong.

The onshore yuan rose to 6.3238 per dollar on Monday, the strongest since April 2018. China’s currency tends to get a boost at this time of the year when exporters’ dollar sales intensify ahead of the Spring Festival holiday.

The PBOC has shown little discomfort with the yuan’s strength and set the currency’s daily fixing rate at the strongest level since 2018 this week. The fixing limits the onshore yuan’s moves by 2% on either side.

China Shows Signs of Loosening Yuan Grip as It Starts Easing (1)

Earlier this month, People’s Bank of China Deputy Governor Liu Guoqiang said the authorities will aim to keep the exchange rate stable, and market and policy factors will help correct any short-term deviation from its equilibrium level. 

©2022 Bloomberg L.P.

Yuan Advances to Record Versus Peers Before New Year Holiday
 

Related Articles

Is cash a thing of the past ? Yes and No is the answer
Is cash a thing of the past ? Yes and No is the answer By Proactive Investors - Aug 18, 2022 2

Cash will account for just 6% of all payments within the next ten years, the banking body UK Finance predicted today. The forecasts came as the latest data showed contactless made...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email