China’s yuan climbs to 14-month high against US dollar

Source:Global Times Published: 2017/9/1 23:08:40

China's yuan climbed to a 14-month high against the US dollar on Friday, after the central bank had implemented firmer thresholds for five consecutive days.

Prior to the opening of markets, the People's Bank of China, the country's central bank, raised its official yuan midpoint to 6.5909 per dollar, firmer than the key psychologically level of 6.6 per dollar for the first time since June 2016.

Friday's midpoint was 101 pips firmer than the previous peg of 6.6010 on Thursday.

In the spot market, the onshore yuan opened at 6.5888 per dollar and was traded at around 6.5679 per dollar, 0.32 percent firmer than the previous late session close. The offshore yuan also strengthened during the afternoon trading, changing hands at 6.5739 per dollar.

The yuan's strength also follows the dollar's broad weakness this year. The dollar index fell about 10 percent year to date.

On Thursday, US Treasury Secretary Steven Mnuchin shrugged at the weaker dollar, telling CNBC that this can benefit the US economy in terms of trade. In April, US President Donald Trump said that the dollar was "getting too strong."

The yuan has gained 2.1 percent against the dollar in August, marking the biggest monthly gain since 1994.


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