The Chinese yuan gained today as a government report showed that China’s manufacturing is expanding, reducing concerns about the slowdown in the Asian nation and leading to the speculation that the nation’s policy makers will allow the currency to appreciate.
The government data showed that China’s manufacturing Purchasing Managers’ Index rose from 51.0 in February to 53.1 in March, while a drop to 50.9 was expected. A figure above 50.0 indicates an expansion. The HSBC report showed a totally different picture, though, as the PMI dropped from 49.6 to 48.3 last month, demonstrating the fifth successive month of decline. It looked like traders preferred to take heed to more favorable report, driving the yuan up.
USD/CNY fell from 6.2995 to 6.2911 as of 12:07 GMT today.
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