Yuan holds near 3-1/2-year high against dollar as rate bets ease
SHANGHAI: China’s yuan hovered near a 3-1/2-year against the dollar on Monday, as reduced expectations of an October US rate hike lent support, while simmering trade tensions could cloud the outlook. The yuan’s appreciation is also being tamed by China’s widening yield gap with the US, while jitters over Europe’s debt problems bolster the safe-haven greenback. In addition to expected Federal…
Shanghai saw China's yuan near a three-and-a-half year high against the dollar on Monday, as reduced expectations of a possible October United States rate hike lent support. However, the trajectory could be clouded by ongoing trade tensions and the widening yield gap between China and the United States. Analysts noted that the dollar's strength received an additional boost from a weaker euro, and cautioned that the rally may face obstacles due to rising trade protectionism and changes in external demand for Chinese-made goods.
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