Yuan rises for first time in 4 days, dollar falls on profit-taking as March rate rise likely
The Japanese yen jumps as investors seek safety after North Korea’s launch of ballistic missiles
The Chinese yuan advanced Monday against the US dollar after the People’s Bank of China guided the currency higher for the first time in four straight sessions, while the Japanese yen also jumped amid growing geopolitical tensions after North Korea fired ballistic missiles into Japanese waters.
Meanwhile, the greenback fell against other major currency rivals as investors booked profit from its recent bull run amid growing expectations of a Federal Reserve rate increase this month.
The spot yuan rebounded in Shanghai after three straight days of declines, up 0.2 per cent to 6.893 per US dollar as of 4.30pm, compared with 6.904 late Friday.
However, the onshore rate was still at its lowest level in nearly two months.
Earlier in the day, the PBOC set the yuan’s mid-point rate at 6.879 per US dollar, stronger by 106 basis points from the previous fixing. It was the first time the central bank strengthened the yuan’s fixing in four days.
In mainland China, traders are allowed to buy or sell the yuan within 2 per cent of the daily official reference rate.