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USD/CNH Edges Back Under 7.2700, PBOC Reiterates FX Stability

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USD/CNH sits slightly lower in recent dealings, last under 7.2700, so down a touch on NY closing levels from Wednesday. Onshore spot is very steady in the first part of dealing, unchanged just under 7.2500.

  • The USD/CNY fixing rose a touch, but didn't produce a CNH reaction. Broader USD sentiment is slightly firmer as markets trade with a slightly risk off tone amid equity losses, although overall moves are modest. USD/JPY is lower, so that is likely aiding the yuan at the margins.
  • Comments PBoC Deputy Governor Tao Ling have also crossed the wires. The Deputy Governor stated that basic FX stability is needed for a powerful currency. Tao Ling was interviewed and spoke about boosting yuan liquidity and hedging (in the offshore market).
  • More support will also be given for foreign institutions to issue Panda bonds in China. More details are available here at this BBG link.
  • The stability comment is very much in line with PBoC and official rhetoric on FX. This fits with the broader backdrop of very steady yuan depreciation pressures and outperforming bouts of USD strength.
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USD/CNH sits slightly lower in recent dealings, last under 7.2700, so down a touch on NY closing levels from Wednesday. Onshore spot is very steady in the first part of dealing, unchanged just under 7.2500.

  • The USD/CNY fixing rose a touch, but didn't produce a CNH reaction. Broader USD sentiment is slightly firmer as markets trade with a slightly risk off tone amid equity losses, although overall moves are modest. USD/JPY is lower, so that is likely aiding the yuan at the margins.
  • Comments PBoC Deputy Governor Tao Ling have also crossed the wires. The Deputy Governor stated that basic FX stability is needed for a powerful currency. Tao Ling was interviewed and spoke about boosting yuan liquidity and hedging (in the offshore market).
  • More support will also be given for foreign institutions to issue Panda bonds in China. More details are available here at this BBG link.
  • The stability comment is very much in line with PBoC and official rhetoric on FX. This fits with the broader backdrop of very steady yuan depreciation pressures and outperforming bouts of USD strength.