The Chinese yuan remained under pressure despite positive economic data from China. As most currencies, the yuan suffered from expectations of monetary tightening from the US Federal Reserve.
The Peopleâs Bank of China set its reference rate at the lowest level since 2011, suggesting that it is willing to engage in the currency war to support the economy. Data released on Saturday suggested that measures taken by Chinese policy makers had an effect as was evident in industrial production that grew faster than economists had anticipated. Yet this did not help the yuan, which was hurt not by China’s central bank, but also by the outlook for higher interest rates from the Fed.
USD/CNY was up a little from 6.4543 to 6.4593 as of 18:59 GMT today.
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