China’s yuan trades weaker after data shows GDP grew 6.7 per cent in 1st quarter
The Chinese yuan fell slightly on Friday morning, continuing its four-day drop against the US dollar after the statistics bureau said the nation’s GDP grew 6.7 per cent in the first quarter, the slowest quarterly pace in seven years, but in line with analysts’ expectations.
The People’s Bank of China set the daily reference rate at 6.4908 against the US dollar on Friday, 0.026 per cent or 17 basis points weaker, the lowest daily setting since March 29 following. The move follows Thursday’s fixing at 6.4891, or 0.64 per cent lower, the biggest single-day drop this year.
Onshore and offshore yuan traded slightly lower following the weaker fixing. The yuan in Hong Kong was at 6.4936, or 0.03 per cent lower at around 10.45am. The yuan in Shanghai was at 6.4872 against the US dollar at 10.45am, or 0.11 per cent lower.
Stephen Innes, senior trader of OANDA, said factors pushing up the US dollar were weighing negatively on the yuan.
“The focus remains off mainland policy as the Monetary Authority of Singapore (MAS) and Bank of Japan (BoJ) hogged the limelight overnight,” Innes added.
Singapore’s central bank unexpectedly eased its exchange-rate based monetary policy settings on Thursday.The move comes after a number of Asian central banks eased monetary policy this year, as authorities strive to counter sluggish global demand for goods, which has tamped down exports and dampened activity.
China's statistics bureaus said in a release Friday that GDP grew 6.7 per cent in the first quarter this year , the slowest growth in seven years.