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China’s yuan near 6-month low, fears of economic recovery falter


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

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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


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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 ?

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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:


Current Item Previous Change

midpoint of PBOC

7,056 0.04%


Spot yuan


7.0724 7.0605

divergence from



Change YTD điểm Score


Change of points since 2005

revaluation 17.03%


Instrument current difference

from the shore

Offshore spot yuan

* -0.17%



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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