Chinese Yuan Soars to Highest in Three Years Against US Dollar

The Chinese yuan soared to the highest level against the US dollar in over three years, as investors around the globe search for safer assets amid the ongoing depreciation of the US dollar and China’s strengthening economic rebound.

The onshore yuan jumped another 0.2% on Tuesday to above 6.40 per dollar, rising by more than 10% over the past 12 months. However, according to analysts, China’s policymakers may intervene in the currency’s appreciation trajectory, as they attempt to stabilize the country’s export demand and subsequent surging commodity prices. “The RMB still sees the firmest appreciation pressure, and this translates to the 6.4000 being still in the spotlight,” OCBC Bank strategists explained to Reuters.

Indeed, economists suggest that a strong yuan could negatively impact the country’s exporters. According to Hong Kong’s Mizuho Bank chief Asian FX strategist Ken Cheung, “The People’s Bank of China (PBOC) is aware of the RMB appreciation risk given slowing China (economic) growth momentum in Q1 and still uneven recovery.”


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Argentina: Newly-Elected President Javier Milei Promises To Dollarize Economy

Javier Milei secured victory in Argentina’s presidential elections, signaling a shift to the right amid...

Monday, November 20, 2023, 10:57:00 AM

No More US Dollar: PBOC Is Setting Up Yuan Clearing Arrangements With Brazil

In the latest blow to the US dollar, the Chinese central bank is preparing to...

Friday, February 10, 2023, 07:34:00 AM

Tesla Recalls Almost 50,000 of its Electric Vehicles Sold in China Over Suspension Defects

Despite Tesla’s astronomical $400 billion market cap, the flamboyant electric vehicle company is being hammered...

Friday, October 23, 2020, 04:01:00 PM

Copper Prices Set to Soar: Analysts Predict All-Time High in Q4 2024

The copper market is showing signs of an impending surge. Market experts at Fastmarkets have...

Tuesday, October 15, 2024, 08:20:00 AM

Trudeau Assures Fight Against Chinese Interference On Elections… Ten Months After He Was Briefed

Prime Minister Justin Trudeau assured Canadians that the federal government is taking “significant measures” to...

Tuesday, November 8, 2022, 04:36:00 PM