Yuan bounces back as trade war talks to get underway
China currency breaks losing streak over last six trading days as senior Chinese delegation plans to visit US to tackle trade dispute.
The Chinese yuan bounced back on Thursday morning as the US-China trade war showed signs of easing and the central bank set its mid price stronger than the market expected.
The offshore yuan, which is traded by international investors outside mainland China, was trading at 6.8844 yuan per dollar as of 7.30pm on Thursday Hong Kong time, up 0.9 per cent. That put an end to the losing streak in the previous six trading days.
On Wednesday, the currency had once dropped 0.9 per cent to a 20-month low at 6.9454 per dollar, the weakest since January 2, 2017, when it traded at 6.9729 per US dollar.
Onshore yuan, traded by mainland traders, closed on Thursday at 6.8960 yuan per dollar, up 0.5 per cent.
“The yuan has strengthened as a senior Chinese delegation will fly to the US later this month to negotiate about the trade war. This has given hope that the trade disputes between China and the US will be solved,” said Tommy Ong, managing director of treasury and markets at DBS Hong Kong.