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Yuan strengthens for the seventh day

People’s Bank of China sets mainland currency’s midpoint against the US dollar at 6.3406

PUBLISHED : Monday, 12 October, 2015, 7:57am
UPDATED : Monday, 12 October, 2015, 11:55am

The People’s Bank of China set the yuan’s midpoint against the US dollar at 6.3406 on Monday, firmer for the seventh straight trading day, as the currency hit monthly highs against the greenback in both onshore and offshore trading.

Onshore yuan (CNY) was traded at 6.3342 as of 10.20 am, the strongest level in a month. Offshore yuan (CNH) is traded at 6.3344 to the US dollar, after touching 6.3325.

The yuan strengthened in the wake of remarks by central bank deputy governor Yi Gang over the weekend that “persistent [renminbi] depreciation would be inconsistent with China’s economic

fundamentals”.

“Going forward, market-based RMB exchange rate reform will continue, and

the RMB exchange rate will become more flexible, floating around the equilibrium level in

both directions,” Yi told the annual meeting of the International Monetary Fund in Lima, Peru.

The Hong Kong dollar remained strong, trading at 7.7500 against the US dollar, the upper end of the peg.

Most global currencies weakened against the greenback, with the euro down 0.18 per cent to 1.1375 against the US dollar and the pound also down 0.18 per cent to 1.5332. The Australian dollar weakened 0.15 per cent to 0.7341. However, the yen firmed 0.07 per cent to 120.24 against the US dollar.

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