The Chinese Yuan is holding steady at a one-week high against the US Dollar following the currency having a stronger fixing; any gains were checked however following the release of weaker than expected manufacturing data and tighter money market conditions.
Data released early on Wednesday showed that activity in China’s huge manufacturing sector slowed to an 11-month low in July as new orders faltered and the nation’s job market weakened. The data suggests that the world’s second largest economy is still losing its momentum. The impact of the weak report sent ripples throughout the Asian markets and affected European trade as currencies such as the Australian Dollar received a knock.
“The key thing now is confidence,” Qu Hongbin, HSBC’s chief China economist in Hong Kong, said on Bloomberg Television. “The confidence now is pretty weak both in the financial market and the corporate sector.”
The Chinese economy could find support after the government responded to the slowdown by saying that it will seek to protect the growth level of 7.5%. Stocks in the country rallied as a result on speculation that the authorities will begin to invest more on building new railways and environmental equipment to help support the economy.
“The market is still divided on whether the Yuan will appreciate or depreciate for the rest of the year, making trading ranges narrow between 6.12 and 6.14 recently,” said a currency trader in Shanghai.
Current Yuan (CNY) Exchange Rates
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The Pound Sterling/ Chinese Yuan Exchange Rate is currently in the region of: 9.4405 <
The Euro/Chinese Yuan Exchange Rate is currently in the region of: 8.1312 <
The US Dollar/Chinese Yuan Exchange Rate is currently in the region of: 6.1428 –
The Australian Dollar/Chinese Yuan Exchange Rate is currently in the region of: 5.6545 <
The New Zealand Dollar/Chinese Yuan Exchange Rate is currently in the region of: 4.8836 >
The Canadian Dollar/Chinese Yuan Exchange Rare is currently in the region of: 5.9604 >
(Correct as of 14:35 pm GMT)
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