The People’s Bank of China has scrapped a requirement for banks to hold a reserve of yuan forward contracts, removing a guard against depreciation, which traders said suggested authorities were discomfited by recent gains. — Reuters pic
The yuan fell 0.7 per cent to 6.7331 in early trade, pulling the Australian dollar 0.2 per cent lower to US$0.7229. The fixing of the onshore trading band at 0115 GMT will be closely watched as a guide to authorities’ stance on the currency’s level. A new US$1.8 billion White House proposal has drawn criticism from both Democrats and Republicans, yet investors seem optimistic that spending will resume at some point.
“Markets should be very sensitive to Senate polling over the coming weeks, given still-high expectations for a large scale US stimulus package, which to some extent if not passed before November is contingent on the Democrats flipping the Senate.” However, Saturday’s move from the PBOC to cut forward reserve requirements, making it cheaper to short the yuan or to hedge against a rise, hints further gains could be tempered.
Other currency moves were modest, with early dollar weakness paring a bit. The euro edged 0.1 per cent lower to US$1.1819 and the yen was broadly steady at 105.64 per dollar. The kiwi dipped 0.1 per cent with the softer yuan to sit at US$0.6666.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Herkunft: malaymail - 🏆 1. / 86 Weiterlesen »