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 exchange rate and a broader developing-nation FX gauge climbed to the highest level since June, underscoring how tariff strategies between the US and China remain a central risk for emerging markets. The latest news about the Chinese currency adjustment would be akin to the 10%-15% depreciation during Trump’s first term, said Guillaume Tresca, senior emerging-market strategist at Generali Investments. “It is not a currency war per se but an adjustment to the impact tariffs could have on the Chinese economy,” he said, adding that weaker yields in China limit policymakers’ ability to allow sharp devaluation without exacerbating capital outflows.

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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 …

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 …

Asian Stocks Gain on China Recovery, Weaker Dollar: Markets Wrap
1 month, 1 week ago

Asian Stocks Gain on China Recovery, Weaker Dollar: Markets Wrap

Live Mint  

Asian equities climbed, aided by signs of a stabilization in China’s economy and a retreat in the dollar. “The strength of the dollar has obviously taken away some of the returns from emerging markets local currency bonds, but we think the more attractive opportunity at this point is in the hard currency aspect of emerging markets,” Niaz said, referring to …

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 …

The real reason behind fluctuations in global foreign exchange market
8 months ago

The real reason behind fluctuations in global foreign exchange market

China Daily  

In recent days, the currencies of emerging market countries have caught everyone's attention because of a weak streak, with the Indonesian rupiah falling to a four-year low, the Malaysian ringgit tumbling to its lowest exchange rate since 1998, and the Indian rupee dropping to a record low. According to the IMF, if the US Federal Reserve keeps its benchmark interest …

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 …

Popular emerging market FX trade back with global rates peaking
1 year, 8 months ago

Popular emerging market FX trade back with global rates peaking

Live Mint  

The stars are aligning in favor of a popular currency trade that benefits from attractive yields and low volatility — even as markets come off one of the most turbulent months in years. Signs that the US economy is slowing down and global interest rates are peaking are setting the stage for investors to revive so-called carry trades in emerging …

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 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 …

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 …

Toothless inflation threats could mean emerging market debt boom
3 years, 10 months ago

Toothless inflation threats could mean emerging market debt boom

Hindustan Times  

A great era for emerging-market bonds may be only just beginning, according to a study of break-even rates. Inflation is a critical component for bond returns, as shown by the slide in global government debt in January as the Biden administration announced it would roll out $1.9 trillion of additional US stimulus. “The disinflationary outlook offers a potential capital gain …

Dollar’s slump propels global peers toward multi-year peaks
4 years ago

Dollar’s slump propels global peers toward multi-year peaks

Live Mint  

The dollar’s protracted decline is spurring Group-of-10 peers toward multi-year highs. China’s economic rebound and bets on a successful roll-out of vaccines are bringing key levels into play for currencies from the euro to the Aussie and the Canadian dollar. “The improving outlook for global growth, combined with strong signals from the Fed that it will maintain loose monetary policy …

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