China's yuan firmer on weaker dollar, strong fixing
HONG KONG: China’s yuan rose against the US dollar on Wednesday, as the greenback drifted lower amid a selloff in US Treasuries, while the Chinese central bank set its daily midpoint rate at a 3-1/2-month high. The spot yuan was 0.07% higher at 6.7408 to the dollar as of 0351 GMT, after trading in a range of 6.7400 to 6.7439. That is not far from the strongest level since February 2023 of 6.7370…
China's yuan strengthened on Wednesday as the US dollar weakened, according to market data. The greenback declined amid a sell-off in US Treasuries, driven by concerns over geopolitics and government debt. The People's Bank of China set the daily midpoint fixing at a three-and-a-half month high, at 6.7854 per dollar, which is 433 pips lower than a Reuters estimate.
The spot yuan rose 0.07% to 6.7408 against the dollar, trading within a range of 6.7400 to 6.7439. This level is close to the strongest since February 2023, at 6.7370, on Monday. Economists predict a gradual appreciation of the undervalued Chinese yuan, with BofA Securities raising its USD/CNY forecast through year-end to 6.6. Traders are also watching the minutes of the US Federal Reserve's most recent meeting for clues on interest rate policy.
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