Yuan Gains as Fears About Slowdown Abate

The Chinese yuan gained today as faster-than-expected inflation eased fears about economic slowdown in the Asian country. Today’s positive data followed the report about trade balance that was released over the weekend and was also better than forecasts.
The government data showed that China’s Consumer Price Index rose 2.5 percent in May, year-on-year. The value was bigger than the predicted growth by 2.4 percent and the previous month’s reading of 1.8 percent. Month-on-month, prices were up 0.1 percent. The trade balance surplus widened from $18.5 billion to $35.9 billion in May compared to the forecast of $22.6 billion.
USD/CNY fell by 0.24 percent to 6.2253 as of 15:29 GMT today.

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