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Currencies

Chinese yuan strengthens on weaker dollar

The People’s Bank of China sets the yuan reference point slightly stronger, up 3 basis points at 6.8629 against the US dollar

PUBLISHED : Thursday, 16 February, 2017, 11:21am
UPDATED : Thursday, 16 February, 2017, 11:21am

China’s yuan traded stronger on Thursday morning, hitting a weekly high at 6.565 to the US dollar, as the greenback weakening slightly.

Onshore yuan in Shanghai also jumped, up 0.17 per cent or 115 points higher at 6.8566 by 10.10am.

Offshore yuan in Hong Kong traded edged 0.06 per cent lower or 44 points lower at 6.8461.

The People’s Bank of China on Thursday set the yuan reference point slightly stronger, up 3 basis points or 0.004 per cent stronger at 6.8629 against the US dollar. It is the fourth day running that the Chinese central bank has strengthened the reference. Traders are allowed to trade up to 2 per cent either side of the reference point for the day.

Zhu Jun, director of the international division of the People’s Bank of China (PBOC), said he does not agree with the view that the yuan would see any substantial adjustments during an interview with the country’s state-owned, China Securities Journal, on Wednesday. He said China’s international payment imbalances were not serious.

The US dollar weakened, with the US Dollar Index falling 0.28 per cent to 100.90.

In other currency trading, the pound broke hit a two-day week high to trade 0.08 per cent stronger to US$1.2468 on Thursday morning while the euro jumped for the second day, up 0.19 per cent to US$1.0617.

The Japanese yen reverse its previous decline to strengthen for the second day, up 0.3 per cent at 113.80 per dollar. Last Friday, President Trump pledged closer security and economic cooperation with Japan.

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