US Dollar (USD), Chinese Yuan (CNY) Stronger On Central Bank Currency Fix

People's Bank of China

In point of fact, after experiencing a havoc-scale volatility in the currency market amid a flurry of uncertainties, currency markets calmed down and volatility gauge seemed to be weakening after China set midpoint rate for its currency at 7.0039, however, the midpoint price for offshore Yuan had still been in its weakest level in more than a decade.

The fix was more than 100-bps firmer compared to market projections based on a recent Bloomberg survey, indicating that the PBOC was utilizing its "counter-cyclical" policy to send a message to the global currency trade that the government wants to nip the currency's devaluation.

The U.S. dollar is too strong and is hurting exports, President Donald Trump said on Thursday, attacking the Federal Reserve for keeping interest rates higher than he would like.

His comments sent USA stocks sharply lower, losing as much as 250 points, undercutting a recent recovery from the continued concerns the trade war will cause a slowdown in the global economy. The currency is now trading at just over 7 yuan to the dollar.

While a weaker currency is a natural effect of China's worsening economy and a central bank in easing mode, Monday's sudden depreciation made it a target of criticism from the Trump administration.

The following explains the working of China's currency regime. The yuan was the world's dullest currency only a few weeks ago, even as tensions with the US on trade suddenly escalated.

More news: Chris Davis Held Back in Dugout After Reportedly Going After Manager

China's currency weakened slightly on Friday to 7.0501 per greenback, following a daily reference rate from the People's Bank of China that was in line with estimates.

China let the yuan slide past the key 7 per dollar level on Monday for the first time since the global financial crisis, days after the United States threatened to slap a 10% tariffs on $300 billion of Chinese goods. "They're going to, and we're going to take strong action against them..."

The exchange rate of China's yuan to the dollar hit the symbolic threshold of 7 to 1 at the start of the week, fuelling further speculation about a deliberate move by Beijing to boost support for its exports while engaged in a trade war with the U.S., the world's largest economy.

The yield gap between Chinese and US benchmark 10-year government bonds stood at 134 basis points on Friday afternoon, compared with a low of 28 basis points hit in November.

"The real effective exchange rate is one benchmark, and on that measure the yuan looks fairly valued at the moment", said Julian Evans-Pritchard, senior China economist at Capital Economics in Singapore.

So far, China has argued that the fluctuation in the yuan exchange rate is due to market forces.

Related News:

Most liked

Massive power cut hits London, wide swathes of United Kingdom , snarling traffic
The two generators involved are believed to have been the Little Barford gas-fired plant and the Hornsea offshore wind farm. Western Power Distribution shared a similar message, and said they were in the process of restoring power to customers.

Google And Twitter Are Using AMD’s New Processors In Their Datacenters
The 2nd Gen EPYC also features faster DDR4 channels allowing memory modules of up to 3200MHz to be used. The 2nd Gen AMD EPYC processor-based systems are available now from the AMD EPYC ecosystem partners.

Another positive test of West Nile Virus in Alamosa
Avoid Mosquito Bites · Be Aware of Peak Mosquito Hours - The hours from dusk to dawn are peak biting times for many mosquitoes. West Nile Virus is a mosquito-borne disease that produces no symptoms in most people who contract it.

UK Economy Contracts For First Time Since 2012
Business investment fell in five of the past six quarters, and was nearly back to where it was as the Brexit referendum was held. May's successor, Boris Johnson, has insisted that Britain will leave the European Union on Halloween come what may.

Manchester City convincing in VAR-packed rout of West Ham
Gabriel Jesus gets the nod to lead City's forward line with Sergio Aguero , who hardly featured in pre-season, on the bench. Sheffield United grabbed a late point away to Bournemouth on their return to the top flight after a 13-year absence.

Gigi Hadid Robbed in Greece
She had her arm around Marielle Hadid, 38, while Bella and Alana posed for the camera on the other end of the sofa. A police report was filed, but still, the scary situation prompted the group to cut the trip short.

Australia 47 - 26 New Zealand | 10 Aug 2019
Our discipline was poor in the first half. "The red card didn't help us, but we didn't help ourselves either". There will be areas last week that we didn't get right so we'll go through that process quietly.

Megan Thee Stallion Twerking While Lizzo Plays The Flute Is A Must
As Nicki Minaj pointed out on Instagram, the track has officially reached a neat pinnacle just hours after its release. She's been using #HotGirlSummer as a slogan on social media, now Megan Thee Stallion has gone one further.

Shooter on the run after killing 2 people on Houston freeway
Two people got out of the vehicle that struck the first vehicle and one of the two began firing at the auto as it rolled downhill. Both the gunman - described as a Hispanic male in his 20s - and his other passenger fled the scene in their auto .

YouTuber Marina Joyce reported missing, appeal issued
The Metropolitan Police Service has asked anyone with information to call 101 and quote reference number 19MIS031063. She also claimed she said she had "found a couple of secrets about the After Life" and could contact the dead.

Asia Minute: Hong Kong Protests Hitting Business
Cathay Pacific Airways, Hong Kong's largest carrier, declined4.2 percent after the airlines scrapped flights leaving the city. Initially, reports suggested that Beijing might deploy forces to Hong Kong, but China later said it would not interfere .

Kylie Jenner stirs a storm on internet, once again!
Next up on the agenda is a "huge, extravagant party" for the night of her actual birthday, according to a source. Wedding or not, it sounds like her 22nd birthday will be one for the books.

When Sonakshi Sinha knocked down Akshay Kumar
Sonakshi had fun pulling it off as she wrote: "You should have seen their faces", followed by three laughing emojis. While Akshay is talking, he adjusts in his chair and pushes it slightly backwards.

Man Utd & Tottenham Make Philippe Coutinho Enquiries as Arsenal 'Agreement' Is Dismissed
Coutinho spent a successful six-month spell at Espanyol in 2012, with Pochettino signing the then 20-year-old on loan from Inter Milan.

Google Podcast Search Is Here & Content Aware
The company wants to facilitate its users by providing YouTube videos, relevant links, and podcasts in your search results. We previously learned that Google's ultimate plan is to catalog as many podcasts as possible as well as transcribe them.