China’s onshore yuan gains on easing Grexit worries, HSBC PMI

The Chinese currency strengthened in the onshore spot market on Tuesday after a three-day break, as the overhang of a possible default of Greece debt was removed overnight as the European creditors granted the country an extension for debt repayment.

Onshore and offshore currencies continued to perform in different direction. The onshore yuan gained 0.01 per cent to 6.2090. Yet offshore traders continued to place bearish bets on the currency due to their concern about the slowdown in the Chinese economy.

The HSBC China Manufacturing PMI rose to 49.6 in the flash reading for June, up from 49.2 in May. However, the employment index fell to the lowest level since February 2009. The offshore yuan lost 0.03 per cent to 6.2052.

China’s central bank set the currency at a weaker level of 6.1119, 15 basis points weaker than the last trading day.

The US Dollar Index gained 0.49 per cent to 94.7870, while the Hong Kong dollar weakened 0.01 per cent to 7.7518 as of 11:38am.