USD/CNY: Two-way volatility in the yuan unchanged despite fast appreciation – China Press

Dhwani Mehta FXStreet

Two-way volatility in the Chinese yuan has not changed despite the currency's rise to three-year highs amid shifts in global monetary policy stances, the state-owned China Securities Journal carried a front-page story on Thursday.

Key takeaways

“Robust exports, foreign capital inflows and prudent monetary policy have provided support a stable yuan.”

"Towards the year-end, heavy FX settlement by companies may contribute to a fast yuan rally to a certain extent, but the impact of seasonal and transactional factors may not be sustainable.”

Market reaction

USD/CNY was last seen trading at 6.3446, modestly flat on the day. Investors digest the hot Chinese inflation data ahead of the US CPI report due on Friday.

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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