In China's financial media, the Financial News linked to PBOC, a report says:
- says the yuan is on a strong footing and will remain balanced
- unnamed experts are cited for the opinion
no longer
- said that the possibility of the dollar weakening increases according to the Fed cut rates in December
- The yuan exchange rate is likely to fluctuate in both directions under the influence of market forces
- Backed by continued improvement in China's economic fundamentals, there is a strong foundation for the yuan to remain stable
The context for all of this is that a possible US tariff hike has raised speculation that China may reduce its currency to help exports. I posted this a little earlier:
USD/CNY Update:
This article was written by Eamonn Sheridan at www.forexlive.com.
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