Published By : 12 Oct 2015 | Published By : QYRESEARCH
A rise against the dollar has been reported in Yuan on Monday, Oct. 12th, 2015, which increased to a record high since its devaluation on Aug. 11th, 2015, following the central bank’s stronger midpoint. The People's Bank of China has set the midpoint rate at a 6.3406/dollar before the market opened on Monday. The midpoint is the strongest midpoint rate since Aug. 12the 2015, as well as is 0.14% firmer than the earlier fix of 6.3493/dollar.
Yuan reported an opening at 6.3387/dollar in the spot market and was trading at 6.3302 at 12 O’clock noon, showing 0.24% firmness compared to the previous close and firmed to 6.3293, which is its highest since Aug. 11th, 2015. The statistical data rolling out from China is pointing towards a further economic weakening of this country. However, Beijing is likely to introduce several stimulus measures to avoid a sharp decline.
Traders, however, have shrugged off rumors regarding the slowdown in the Chinese currency market as the markets in China have grown a partial immunity for a relative weakness in the country’s economy, as long as the slowdown is not precipitous. As of now the onshore as well as, offshore markets are no more sensitive towards the economic indicators.
The offshore Yuan was trading matched almost with the onshore market spot at 6.3305/dollar. Traders also said that the little intervention by the Chinese central bank had a significant impact on both onshore and offshore Yuan markets.
The Yuan was abruptly devalued on Aug. 11th, 2015, stirring the global markets for a good one month and finally scrambled to let it depreciate further.