Yuan Gains For First Session In Four

Offshore yuan strengthened on Monday, USD/CNH finishing the session at 6.5471, a gain of 0.16% for the yuan which was the first stronger finish since April 6.

• The upside was catalysed by reports that US Treasury Secretary Yellen would refrain from naming China as a currency manipulator in her first semiannual foreign-exchange report. The report is expected to be released on Thursday. The team at the treasury is also said to have discussed rolling back a 2019 Trump administration policy to lower thresholds for determining whether an economy is manipulating its currency for competitive advantage. If this were to be rolled back it could get India and Taiwan off the hook too. Designation as a currency manipulator comes with no immediate penalties but can cause some consternation for financial markets. The law requires the administration to engage with the countries to address the perceived exchange-rate imbalance.