The Chinese yuan gained on the US dollar today after China’s central bank tightened its monetary policy. The monetary tightening overshadowed the slowdown of growth of the manufacturing sector.
The People’s Bank of China raised its short-term interest rates on Thursday. Some analysts speculated that it is a sign that the central bank wants to prevent the currency from weakening too much. The Caixin manufacturing Purchasing Managers’ Index registered a reading of 51.0 in January — a drop from December’s 51.9, which was the highest level in almost four years.
USD/CNY fell by 0.17% to 6.8724 as of 10:16 GMT today.
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