Yuan midpoint 24 basis points weaker, with trading flat in both onshore and offshore markets
People’s Bank of China sets yuan fixing at 6.3497, 0.04 per cent weaker.
The yuan was trading almost flat in both onshore and offshore markets on Thursday as the People’s Bank of China weakened the midpoint by 24 basis points – 0.04 per cent – to 6.3497 against the US dollar.
As of 11 am, CNY (onshore yuan) was trading 6.3485, with CNH (offshore yuan) trading at 6.3675.
Both the pound and euro continued to strengthen against the greenback. The pound gained 0.1 per cent to 1.5432, and the euro gained 0.08 per cent to 1.1345.
The yen also climbed 0.08 per cent to 119.84 against the US dollar.
Japan’s policy to engineer growth with a lower currency had so far proven to be a failure, as shown in slackening trade growth, said Govinda Finn, senior Japan analyst at Standard Life Investments.
“Japan’s real trade balance has barely responded to the nearly 25 per cent fall in the currency on a real, trade-weighted basis and is up just 3.6 per cent since Q3 2012,” Finn said in a note. “This response not only reflects a surprisingly robust performance of imports due to rising penetration levels of overseas goods and services but, also, a failure of Japanese firms to secure export market share gains.
“Japan is quickly becoming the poster child for the limitations of a currency-based attempt to engineer stronger growth and boost competitiveness.”