China’s yuan retreats from one-month high after US inflation report
China’s onshore yuan retreated on Monday from a nearly one-month high last Friday after the greenback became stronger after US Federal Reserve chair Janet Yellen said interest rates were on track to increase this year and the nation reported upbeat inflation data last month.
The onshore spot yuan weakened 0.04 per cent, or 27 basis points, to 6.2001 at noon, after the currency hit the strongest level since April 24 on Friday. The offshore yuan lost 0.05 per cent, or 28 basis points, to 6.2002 against the dollar.
The People’s Bank of China set the benchmark midpoint rate at 6.1165 against the US dollar, 34 pips weaker from last Friday’s level.
The People’s Bank of China can control the currency trading range through a mid price issued daily at 9:15am. The onshore rate trades up or down 2 per cent against this rate.
Core inflation in the US rose to 1.8 per cent in April from a month earlier.
The Hong Kong dollar weakened 0.01 per cent, or 4 pips, to 7.7521 against the dollar.