China’s yuan slides to 14-year low after US rate hikes
2 years, 2 months ago

China’s yuan slides to 14-year low after US rate hikes

Associated Press  

BEIJING — China’s yuan fell to a 14-year low against the dollar Wednesday despite central bank efforts to stem the slide after U.S. interest rate hikes prompted traders to convert money into dollars in search of higher returns. On Wednesday, a deputy central bank governor, Liu Guoqiang, held a video meeting with Chinese bankers and told them to “maintain the basic stability of the exchange rate,” according to a central bank statement. The yuan has exceeded expectations it might fall to 7 to the dollar after the Federal Reserve started aggressive rate hikes to cool inflation that is at a four-decade high. “Less aggressive rate hike talk” might help the yuan rally, but it might weaken further “if the Fed maintains its very hawkish tone” into next year, Pang wrote.

China Bank Chinese Beijing Fed Rate Yuan Low Dollar Hikes  reserve  dollar  hikes  bank  chinese  central  low  14year  yuan  interest  chinas  rate  fell  slides

History of this topic

‘Let yuan fall’: China’s new mantra to counter Trump tariff as Xi battles to revive economy
1 week, 4 days ago

‘Let yuan fall’: China’s new mantra to counter Trump tariff as Xi battles to revive economy

Firstpost  

China is considering allowing its currency yuan to weaken in 2025 as the country braces for higher US trade tariffs as Donald Trump returns to the White House on January 20, 2025 As per analysts, the yuan may fall to 7.37 per dollar by the end of 2025, though a key factor will be how much Donald Trump raises tariffs …

Rupee slips to record low but central bank steps in to curb losses
1 week, 4 days ago

Rupee slips to record low but central bank steps in to curb losses

Live Mint  

By Jaspreet Kalra MUMBAI, Dec 12 - The Indian rupee declined to its all-time low on Thursday, pressured by dollar bids in the non-deliverable forwards market and from importers while intervention by the central bank kept a lid on losses, traders said. Heightened dollar demand in the NDF market alongside strong dollar buying by local importers, including oil companies, have …

China’s Weaker Yuan Sends Ripples Across Emerging Market Currencies
1 week, 5 days ago

China’s Weaker Yuan Sends Ripples Across Emerging Market Currencies

Live Mint  

Emerging-market currencies dropped Wednesday, with an index of developing-nation currencies heading for its steepest one-day loss in a week and a half. The depreciation supports Chinese exporters but raises risks of capital outflows and financial instability, challenges that could ripple through emerging markets tied to Chinese demand, as cheaper Chinese undercut competitors in other developing economies. The correlation between China’s …

China still has further room for RRR, interest rate cuts
2 weeks, 1 day ago

China still has further room for RRR, interest rate cuts

China Daily  

By Sheng Songcheng | China Daily | Updated: 2024-12-09 10:35 The People's Bank of China, the country's central bank, proposed in its third quarter monetary policy implementation report that a reasonable pickup in prices should be taken as a key consideration in monetary policymaking to keep prices at a reasonable level. And with the central bank maintaining its stance on …

3 factors that pulled China's yuan to 4-month low against dollar despite impressive PMI numbers
Trending News
3 weeks ago

3 factors that pulled China's yuan to 4-month low against dollar despite impressive PMI numbers

Firstpost  

China’s yuan fell to a low 7.2675 per dollar, its weakest since July 24 on Monday despite private manufacturing survey showing that the country’s factory activity expanded at the fastest pace in five months in November Aiming to takeover US dollar and becoming world’s principal reserve currency, China’s yuan slipped to a four-month low raising concerns that the second largest …

Chinadaily.com.cn
4 weeks ago

Chinadaily.com.cn

China Daily  

Yuan strengthens against greenback The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 24 pips to 7.1918 against the US dollar on Monday, according to the China Foreign Exchange Trade System. Over 100 trusted data matrixes planned China is aiming to establish more than 100 trusted data matrixes by 2028, forming a set of data matrix …

China's yuan weakens to 3-1/2-month low as Trump tariff threat weighs
1 month, 1 week ago

China's yuan weakens to 3-1/2-month low as Trump tariff threat weighs

Hindustan Times  

SHANGHAI, - China's yuan skidded to a 3-1/2-month low against the dollar on Tuesday, hurt by broad strength in the U.S. currency and persistent market worries over higher tariffs on Chinese goods during Donald Trump's second presidency. During Trump's first presidency, the yuan weakened about 5% against the dollar in the initial round of U.S. tariffs on Chinese goods in …

China’s 10-year bond yields drop amid $1.4 billion debt refinancing program, more stimulus awaited
1 month, 2 weeks ago

China’s 10-year bond yields drop amid $1.4 billion debt refinancing program, more stimulus awaited

Live Mint  

Yield for China's benchmark 10-year bonds have slid to their lowest in over a month after the government announced its 10 trillion yuan or $1.4 billion worth debt refinancing programme, Bloomberg reported. China's Debt Refinancing Programme — The Details The announcement was made after the National People’s Congress Standing Committee meeting on November 8, to “underwhelmed” reactions, as per the …

China's Central Bank Cuts Key Interest Rates to Boost Economy
2 months ago

China's Central Bank Cuts Key Interest Rates to Boost Economy

The Hindu  

China's central bank has cut two key interest rates to boost the economy. The one-year Loan Prime Rate (LPR) and five-year LPR were cut from 3.35% to 3.1% and 3.85 to 3.6% respectively. These cuts are aimed at reviving spending and boosting economic growth. However, the economy has been struggling with weak consumption and a prolonged debt crisis in the …

Chinese stocks rally after stimulus measures
2 months, 3 weeks ago

Chinese stocks rally after stimulus measures

China Daily  

An investor looks at share prices at a brokerage in Fuyang, Anhui province. The benchmark Shanghai Composite Index gained 2.88 percent to close at 3,087.53 points, while the Shenzhen Component Index soared 6.71 percent to reach 9,514.86 points at the close. China's central bank cut the reserve requirement ratio by 0.5 percentage points for financial institutions and lowered the interest …

Asian stocks follow Wall Street's rate-cut rally higher, as BOJ stands pat
3 months ago

Asian stocks follow Wall Street's rate-cut rally higher, as BOJ stands pat

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Dollar struggles to find footing on rising bets of outsized Fed cut
3 months, 2 weeks ago

Dollar struggles to find footing on rising bets of outsized Fed cut

The Hindu  

The dollar stayed on the back foot on Thursday as renewed concerns over the U.S. economy's growth outlook bolstered expectations of a supersized rate cut from the Federal Reserve this month. Global markets have been on edge and stocks, in particular, have been badly bruised after softer-than-expected U.S. data this week reignited concerns that the growth outlook of the world's …

China may keep RMB stable if Fed cuts rates
3 months, 3 weeks ago

China may keep RMB stable if Fed cuts rates

China Daily  

A woman shows banknotes and coins included in the 2019 edition of the fifth series of the renminbi. With the United States appearing to be poised for interest rate cuts starting September, Chinese policymakers should strengthen monitoring of capital flows and prepare contingency plans against any potential sharp renminbi appreciation, analysts said. Stephen Jen, chief executive of British hedge fund …

China shows signs of slowdown to aggregate social financing
8 months, 1 week ago

China shows signs of slowdown to aggregate social financing

China Daily  

A pedestrian walks past the headquarters of the PBOC in Beijing. JIANG QIMING/CHINA NEWS SERVICE China's financing activity showed signs of slowing down as the increment in aggregate social financing — the total amount of financing to the real economy — reached 12.93 trillion yuan in the first quarter of 2024, down by 1.61 trillion yuan compared with the same …

Wall Street rallies to records as Federal Reserve sees rate cuts for 2024
9 months ago

Wall Street rallies to records as Federal Reserve sees rate cuts for 2024

Associated Press  

TOKYO — Asian benchmarks were mostly higher on Thursday after U.S. stocks rallied to records following the Federal Reserve’s i ndication that it expects to deliver interest rate cuts later this year. Some of Wall Street’s nervousness coming into the day washed away after the Fed released a survey of its policy makers, which showed the median still expects the …

Chinese stocks slide as investors maintain caution after US inflation report
9 months, 1 week ago

Chinese stocks slide as investors maintain caution after US inflation report

Associated Press  

HONG KONG — China stocks were lower Wednesday after the overnight United States inflation report that signaled a diminished possibility of the Fed’s rate cut made investors cautious. Cathay Pacific Airways stock jumped 5.3% after it announced remarkable a 336% increase in operating profit in 2023, reaching 15.1 billion Hong Kong dollars and surpassing the previous record set in 2010. …

China's stocks hit nine-month low as Chinese yuan weakens
1 year, 4 months ago

China's stocks hit nine-month low as Chinese yuan weakens

Op India  

As China’s currency continues to weaken, Chinese stocks hit nine-month lows and the yuan fell on Monday as the authorities’ efforts to revive demand failed to inspire investors, reported Channel News Asia. According to Channel News Asia, analysts say Monday’s modest rate cut shows authorities are concerned about the risks of a major yuan selloff and capital flight, with any …

Dedollarisation: China's state-owned banks cut interest rates on dollar deposits to boost forex trade in yuan
1 year, 6 months ago

Dedollarisation: China's state-owned banks cut interest rates on dollar deposits to boost forex trade in yuan

Firstpost  

China is prepping its yuan to become the next dollar and the global reserve currency. In the latest salvo fired at the dollar, China has told its state-owned banks to substantially reduce interest on dollar deposits, a Reuters report said. In China, interest rates offered by the banks on dollar deposits of $50,000 and above have been capped at 4.3 …

Dollar fast losing dominance as global reserve currency as rupee, yuan rise
1 year, 7 months ago

Dollar fast losing dominance as global reserve currency as rupee, yuan rise

Firstpost  

Dollar’s share of global reserves has declined by 11 per cent since 2016 on this adjusted basis, a report by Eurizon SLJ Asset Management said New Delhi: Dollar, which has been ruling as the global reserve currency, is gradually losing its dominance especially after the onset of the Russia-Ukraine war last year. The US currency saw a massive decline of …

US dollar fast losing out to the Chinese yuan, says 'Doctor Doom' Nouriel Roubini
1 year, 10 months ago

US dollar fast losing out to the Chinese yuan, says 'Doctor Doom' Nouriel Roubini

Firstpost  

Nouriel Roubini said even though there is no currency yet which is capable of knocking the US dollar off its pedestal, but the greenback is rapidly losing its competitive advantage to the Chinese yuan New York: The US dollar is quickly losing its competitive edge and its status as the world’s main reserve currency is in jeopardy, said economist Nouriel …

China’s Yuan Hits 15-year Low, Days After Xi Extends Rule
2 years, 1 month ago

China’s Yuan Hits 15-year Low, Days After Xi Extends Rule

News 18  

China’s yuan hit a 15-year low against the US dollar on Tuesday, with investors spooked after President Xi Jinping gained complete dominance over the Communist Party at a key meeting last week. The offshore yuan — which is circulated outside mainland China and is more freely traded than currency in the domestic market — fell to 7.3735 against the dollar, …

China’s yuan sinks to record low against the dollar
2 years, 2 months ago

China’s yuan sinks to record low against the dollar

Al Jazeera  

Chinese currency’s slide comes despite central bank taking steps to prop up its value. China’s yuan has tumbled to a record low against the US dollar in offshore trading, joining a host of currencies experiencing sharp declines against the greenback. The offshore yuan, which is traded outside mainland China, fell to 7.2386 against the dollar on Wednesday, the Bloomberg news …

Asian stocks down after US inflation fuels rate hike fears
2 years, 5 months ago

Asian stocks down after US inflation fuels rate hike fears

Associated Press  

BEIJING — Asian stock markets rose Thursday despite a record-setting U.S. inflation report that pointed to more possible interest rate hikes that investors worry will chill economic growth. Wall Street’s benchmark S&P 500 index lost 0.4% on Wednesday after data showed U.S. consumer inflation accelerated to 9.1% in June over a year earlier from May’s 8.6%. Investors worry aggressive action …

China can offset effects of Fed's rate hikes
2 years, 7 months ago

China can offset effects of Fed's rate hikes

China Daily  

MA XUEJING/CHINA DAILY Since the international monetary system is dominated by the dollar, the US Federal Reserve's rate hike is bound to have a spillover effect on other economies and constrain the maneuvering space for their monetary policy to varying degrees. On May 12, for example, the yield on China's 10-year treasury bond was 2.81 percent, meaning the interest rate …

China can offset effects of Fed's rate hikes
2 years, 7 months ago

China can offset effects of Fed's rate hikes

China Daily  

MA XUEJING/CHINA DAILY Since the international monetary system is dominated by the dollar, the US Federal Reserve's rate hike is bound to have a spillover effect on other economies and constrain the maneuvering space for their monetary policy to varying degrees. On May 12, for example, the yield on China's 10-year treasury bond was 2.81 percent, meaning the interest rate …

US monetary policy harms global economy
2 years, 8 months ago

US monetary policy harms global economy

China Daily  

US Federal Reserve in Washington DC. Second, the Fed's interest rate hike is likely to trigger a financial crisis in emerging economies, as it will lead to the devaluation of emerging economies' currencies, thereby increasing their external debt burden. Third, interest rate hikes by the Fed will exacerbate debt risks in emerging economies whose foreign debt repayment peaks in 2022 …

China cuts interest rates to fight economic impact of zero-Covid policy
3 years ago

China cuts interest rates to fight economic impact of zero-Covid policy

The Telegraph  

China’s central bank has cut interest rates in a bid to fight the economic impact of its "zero-Covid" policy. The People’s Bank of China cut the benchmark one-year loan prime rate to 3.8pc from 3.85pc, the first time it has reduced rates since April 2020 when the pandemic peaked in the country. Reducing interest rates may have the effect of …

China to stay on 'normal' policy path
4 years ago

China to stay on 'normal' policy path

China Daily  

The People's Bank of China. PBOC report: Interest rates to be kept at low levels to support small firms China will maintain a normal monetary policy for as long as possible and keep interest rates at a relatively low level to support small business financing and maintain ample liquidity in the system, the People's Bank of China, the central bank, …

Discover Related