The Chinese yuan appreciated today as the macroeconomic data signaled about the worldwide economic growth and after the central bank set the daily reference rate higher in response to the dollar’s declines.
The Chinaâs Purchasing Managersâ Index went up to 51.7 in August from 51.2 in the previous month. The median estimate of the experts was 51.5. The Dollar Index, which monitors the greenback’s performance versus the six major currencies, slumped the most in six weeks yesterday. Reacting to this decline the Peopleâs Bank of China raised the reference rate by 0.18 percent to 6.8003 per dollar. That was the biggest increase since July 2nd.
The economists believe that the yuan would retain its tendency to appreciate. The appreciation may be slow this year but should gain momentum in the next.
USD/CNY traded at 6.8080 today as of 21:42 GMT after it opened at 6.8087. EUR/CNY was at 8.7306, while it opened at 8.7325.
If you have any questions, comments or opinions regarding the Chinese Yuan,
feel free to post them using the commentary form below.
