Despite easing today the Yuan is on a roll

SHANGHAI, Nov 24 (Reuters) – China’s yuan weakened against the U.S. dollar on Friday, with strong corporate demand supporting the greenback but the Chinese currency is on course for its best week in more than a month. Prior to market opening, the People’s Bank of China (PBOC) set the official yuan midpoint at its strongest in six weeks at 6.5810 per dollar. The central bank’s guidance rate breached the key 6.6 level, underpinned by a robust spot yuan performance the day earlier. But traders said corporates’ bargain hunting for the dollar countered the stronger midpoint. The midpoint was 211 pips or 0.32 percent firmer than the previous fix of 6.6021 per dollar. Market participants said the official fix, the firmest since Oct. 12, largely matched what their models had suggested. “The yuan is becoming a fantastic benchmark for gauging U.S. dollar sensitivity as the PBOC guidance is capturing the broader G-10 move well, as the pair took another leg lower on the back of the dovish FOMC,” Stephen Innes, head of trading in Asia Pacific for OANDA said in a note on Friday.

CNBC Via Reuters

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Stephen Innes

Stephen Innes

Head of Trading APAC at
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.