HONG KONG — The yuan weakens
on Thursday, down to near six-month lows from broadly stronger levels
US Dollar on Thursday, as investors remain concerned that
China’s post-COVID economic recovery is losing momentum.
Before the market opened, the People’s Bank of China
(PBOC) sets the average daily rate at 7.0529 per US
dollars, stronger than the previous fix 7,056 but mostly suitable
with consensus expectations.
Investors see the repair as a sign that the PBOC will
suffered further weakening of the renminbi, and that “it is allowing
market forces to boost the yuan as long as price action does not
become too unruly,” Maybank analysts said in a research note on
Investors are also holding back after a flurry of data for
April released earlier this month pointed to an economy
Losing momentum after initial post-COVID recovery, analysts
Spot yuan opened at 7,0680 to the dollar and
changed hands at 7.0724 at midday, 119 pips weaker than
close at the end of the previous session and the midpoint was 0.28% weaker. The
spot rates are currently allowed to trade with a range of 2% above or
below the official limit on any given day.
“Policy makers as well as foreign investors are looking for
a stronger signal for a self-sustaining economic recovery first
committed to investing more inward,” Bank of America
The analysts said in a research note published this week.
China’s April Industrial Profits Data, to be released on Saturday,
and Purchasing Managers Index for May, to be released on
Fourth, can provide further signals.
Bank of America has revised its yuan forecast for
second quarter to 7.0 per dollar from 6.8 previously.
The yuan is struggling against a stronger dollar in general, because
Global Dollar Index rises to two-month high
While US Federal Reserve officials usually agree in the end
months in which the need to raise interest rates further “has been”
become less certain,” their views are still divided
Should interest rates be raised more due to the risk of ?
4 . advertising
persistent inflation, according to the minutes of May 2-3
meeting released on Wednesday.
The dollar has also benefited from its safe-haven status as
a result of an impasse in the negotiations in Washington for approval
the increase in the debt ceiling of the US government. While failing
to reach agreement will activate a default can also tip
The US economy is in recession, investors are more alienated
risky assets because they fear the impact on the global economy.
The offshore yuan traded 0.17% weaker against
spot onshore at 7.0843 per dollar.
One-year forward value for offshore yuan
trades at 6.8932 per dollar, or about 2.77%
appreciated within 12 months.
The RMB market at 3:31 AM GMT:
POINT ON BOARD:
Current Item Previous Change
midpoint of PBOC
Change YTD điểm Score
Change of points since 2005
Instrument current difference
from the shore
Offshore spot yuan
not delivered 2.19%
6.9017 . forward
*Premium for points offshore vs onshore
**Pictures reflect differences from the official PBOC midpoint,
as non-deliverable maturities are settled on the midpoint.
(Reporting by Georgina Lee; Editing by Simon Cameron-Moore)
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