Financial markets have been anything but stable in recent weeks. Much of the movement has been triggered by the US Federal Reserve intimating that it could begin to pare its extensive quantitative easing methods this year, severely dampening the appeal of emerging market and commodity-driven assets.
The US Dollar Exchange Rate was in the region of 6.1468 against the Chinese Yuan as of 11:50 am GMT
But concerns of a slowdown in China, the world’s second largest economy, have also taken a toll.
Although the People’s Bank of China asserted its intention to stabilise the nation’s money market through the adoption of necessary measures, Chinese stocks declined to a four-year low during the local session and the Yuan dropped against the US Dollar for a fifth day.
The Yuan weakened to 6.1478 per US Dollar
According to official sources, the PBOC has provided some financial institutions with the liquidity needed to bring stability to money market rates. The central bank also intends to use short-term liquidity operations and standing lending-facility tools to try and keep markets stable.
After the PBOC issued its statement one chief economist commented: ‘The message is clear: the central bank doesn’t want to see a tsunami in China’s financial markets, and market rates will drop further. [These assurances are] a pill to soothe the nerves.’
The PBOC has also opted to lower the Yuan’s fixing rate to 6.1779 today, a decline of 0.02 per cent.
Yesterday HSBC Holdings Plc remarked that it expects the Yuan to close the year trading in the region of 6.16 per US Dollar as a result of spiking money-market rates damaging inflation forecasts and economic growth.
Current Yuan (CNY) Exchange Rates
< Down > Up
The Pound Sterling/ Chinese Yuan Exchange Rate is currently in the region of: 9.4470 <
The Euro/Chinese Yuan Exchange Rate is currently in the region of: 8.0351 <
The US Dollar/Chinese Yuan Exchange Rate is currently in the region of: 6.1468 >
The Australian Dollar/Chinese Yuan Exchange Rate is currently in the region of: 5.6901 >
The New Zealand Dollar/Chinese Yuan Exchange Rate is currently in the region of: 4.8671 –
The Canadian Dollar/Chinese Yuan Exchange Rare is currently in the region of: 5.8708 >
(Correct as of 11:50 am GMT)
Comments are closed.