China's yuan firms to over one-month high, buoyed by dovish US Fed comment

Reuters

China's yuan firms to over one-month high, buoyed by dovish US Fed comment

2023 3월 23 일, 오전 2:18 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>China's yuan firms to over one-month high, buoyed by dovish US Fed comment</title></head><body>

By Georgina Lee

HONG KONG, March 23 (Reuters) -China's yuan firmed on Thursday as investors were relieved by more dovish comments from the U.S. central bank that reined in expectationsfor more interest rate hikes, boosting sentiment for the yuan and other Asian currencies.

The U.S. Federal Reserve raised interest rates by another quarter of a percentage point on Wednesday, lifting its benchmark overnight rateto the 4.75%-5.00% range.

This led U.S. treasury yields to fall across the curve and weighed on the U.S. dollar, thereby lifting Asian currencies including the yuan, which at one point strengthened to 6.8340 in early trading hours, itsstrongest since mid-February.

Fed ChairJerome Powell said the banking industry turmoilpresents a risk ofa credit crunch with "significant" implications for the economy, and some Fed officials expectanother rate increase by the same magnitude by end of this year.

"The U.S. Fed just confirmed that there is an end in sight for interest rate rise, instead of maintaining a hawkish outlook they would take more into consideration" such as the banking sector stress,said Christopher Wong, a FX strategist at OCBC Bank.

The spot yuan CNY=CFXS opened at 6.8522 per dollar and was changing hands at 6.8498 at midday, 82 pips stronger than the previous late session close and -0.31% from the midpoint.

The People's Bank of China set the midpoint rate CNY=PBOC at 6.8709 per U.S. dollar prior to market open, firmer than the previous fix 6.8715. The spot rate is currently allowed to trade with a range 2% above or below the official fixing on any given day.

The global dollar index .DXY fell to 102.257, near seven-week lows, from the previous close of 102.346.

But capping the yuan's upside is uncertainty about whether the country's recovery could sustain the momentum as shown by previous economic data, as beleaguered property developer China Evergrande attempts to move forward with its $22.7 billion offshore debt restructuring plan, which could reshape investors' confidence and lift an obstacle clouding China's economy.

Evergrande's restructuring news also came asits new-energyvehicle unit saidit may have to halt production due to a lack of fresh funding.

"This underlines the fact that the the country's recovery process is still gradual, far short of a boom situation," Wong said.

The offshore yuan CNH=D3 was trading 0.02% stronger than the onshore spot at 6.8484 per dollar.

The one-year forward value for the offshore yuan CNH1YOR= traded at 6.6981 per dollar, indicating a roughly 2.24% appreciation within 12 months.

The yuan market at 2:26AM GMT:

ONSHORE SPOT:

Item	Current	Previous	Change
PBOC midpoint CNY=SAEC	6.8709	6.8715	0.01%
Spot yuan CNY=CFXS	6.8498	6.858	0.12%
Divergence from midpoint*	-0.31%
Spot change YTD			0.73%
Spot change since 2005 revaluation			20.83%

OFFSHORE CNH MARKET

Instrument	Current	Difference from onshore
Offshore spot yuan CNH= *	6.8484	0.02%
Offshore non-deliverable forwards CNY1YNDFOR= **	6.703	2.50%

*Premium for offshore spot over onshore CNY=CFXS

**Figure reflects difference from PBOC's official midpoint, since non-deliverable forwards are settled against the midpoint. CNY=SAEC.

Reporting by Georgina Lee; Editing by Stephen Coates

</body></html>

China's yuan firms to over one-month high, buoyed by dovish US Fed comment

관련 자산

최신 뉴스

Shanghai court freezes $278 mln worth of shares in Wanda Commercial

FMCG stocks lead Indian shares higher ahead of RBI rate decision

New York Times business news - June 7

China's yuan flat, bolstered by authorities' pressure on banks while exports disappoint

Soccer-Gladbach name Seoane as new head coach

XM 실시간 채팅