Distrust but Verify

China’s currency continues to attract market attention as it approaches the 6.60 level against the US dollar, with more volatility in the daily fixing rate suggesting greater influence of a trade-weighted basket of currencies. Fundamentals of currency management remain little changed, however, with the PBOC intervening intra-day to limit depreciation, and adjustments in the daily fix appear primarily policy-driven. Continued US dollar strength in global markets will pressure Chinese authorities to further relax control of the yuan.

Posted August 1, 2017
Facebook Twitter Pinterest