In further efforts to counter the negative effect of the Chinese coronavirus outbreak in the country, the banks in China cut interest rates for small companies in Hubei province.
Note that Wuhan is in Hubei province, the epicenter of the virus epidemic.
This comes after the People’s Bank of China (PBOC) announced on Tuesday that it would inject "reasonable and sufficient liquidity" in the money market.
China extended the Lunar New Year holiday until February 3rd, in the face of the virus spread.
Meanwhile, USD/CNY extends its recent bullish momentum on the 6.93 handle, as markets re-assess the economic impact of the virus. At the press time, the cross trades flat near 6.9370 amid holiday-thinned markets.
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