China’s SAFE: A breach of 6.4 yuan per dollar this week was normal, driven by market force

Dhwani Mehta FXStreet

Further comments are flowing in from the State Administration of Foreign Exchange (SAFE), China’s fx regulator, as it now talks about the recent appreciative move in the yuan.

Key quotes

Will monitor and make proactive adjustments to guide market expectations amid monetary policy adjustments at major economies.

A breach of 6.4 yuan per dollar this week was normal, driven by market force.

Yuan is unlikely to persistently strengthen or depreciate, will be basically stable at balanced levels.

Market reaction

USD/CNY is keeping its recovery mode intact from four-month troughs of 6.3797, currently trading at 6.3992, up 0.10% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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