The Chinese yuan advanced today as the preliminary index of China’s manufacturing rose this month, giving hope that the biggest Asian economy will avoid hard landing and will continue to support global growth.
The HSBC/Markit manufacturing Purchasing Managers’ Index rose from 47.9 in September to 49.1 in October. The value remained under 50.0, though, indicating contraction. Adding to the negative factors, Europe continues to struggle amid the crisis. China’s export-driven economy strongly depends on the European region and the recession in the eurozone is very negative for the economy and the yuan.
USD/CNY was down from 6.2525 to 6.2487 as of 12:34 GMT today.
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