Free Trial

Yuan To Maintain Stable Two-Way Move Despite RRR Cut

CHINA PRESS
MNI (Singapore)

The yuan is expected to maintain its stable two-way movement as the Chinese economy continue to improve, while a possibly lower U.S. Dollar Index and weaker U.S. economic performance next year will help yuan regain the seven level against the dollar, 21st Century Business Herald reported citing analysts. Though some speculators short sold the yuan after the People’s Bank of China cut banks’ reserve requirement ratio last Friday, the offshore yuan regained lost ground to strengthen above 7.2 against the dollar on Monday, as the China-U.S. interest rate spread narrowed to 78bp despite the RRR cut, the newspaper said. Many emerging market investment funds believe that the RRR cut will help stabilise the economy and the yuan has been underestimated, the newspaper said citing an unnamed private equity fund manager in Hong Kong.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.