China’s Yuan tacks on PBOC's dovish statement

China’s Yuan tacks on PBOC's dovish statement

On Wednesday, China's Yuan managed to ascend versus the evergreen buck, just a day after the country’s main financial institution had markets assured it would keep the national currency steady in the face of heightened concerns as for trade clashes. However, equities were still under pressure.

As a matter of fact, Chinese currency along with equity markets have been wavering ahead of July 6, when American duties on $34 billion worth of China’s products are set to come into effect. The Chinese government has told it would response with duties on products from the United States.

In June, the Chinese Yuan faced its worst month on record, losing approximately 3.3% of its value versus the US currency, and the decline resumed on Monday.

On Tuesday, it bounced off after the statement from PBOC Governor Yi Gang and resumed riding the updraft on Wednesday, thus putting the Chinese Yuan on track for its first two-day gaining marathon since the middle of June as well as the best day since late March.

The Chinese Yuan hit 6.6009 against the greenback, just 0.65% stronger than Tuesday’s outcome.

Some traders pointed out that the PBOC's clue turned out to be clear enough, although the market would monitor and timely react to developments ahead of July 6.

Major Chinese equity indexes happened to be less enthusiastic. They started the trading day flip-flopping around Tuesday's close before jumping with both feet into negative territory to stay there.

The CSI300 Index headed south by 1.3%, the Shanghai Composite Index lost 1%.

An index gauging the 50 most representative blue-chips in Shanghai, also known as "nifty 50", headed south approximately 1% showing a 14-month minimum.

The Hang Seng Index dived more than 1.3%, while an index, gauging mainland companies, dipped nearly 1.7%.

 

Similar

Popular

Asian shares tumble with Japan markets shut

On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…

Greenback surges as yields soar

On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera