The Chinese yuan was relatively stable today, but market analysts are worried that the currency is vulnerable to the negative impact of the Chinese stock market collapse.
More than a half of Chinese companies suspended trading of their shares on the Shanghai and Shenzhen exchanges. Yet all the efforts taken by traders and the Chinese government did not prevent the benchmark Shanghai Composite Index from plummeting 5.9 percent yesterday. As a result, the one-month implied volatility index jumped, suggesting that market participants are very concerned about the developments in China that may overshadow the problems in Europe.
USD/CNY was at about 6.2090 as of 17:13 GMT today after opening at 6.2100.
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