Ren­minbi rises strongly against US dol­lar

China Daily European Weekly - - News Digest -

China’s cen­tral bank raised the yuan’s of­fi­cial cen­tral par­ity rate to 6.6102 per US dol­lar on Aug 30, the strong­est level since mid-Au­gust 2016. An­a­lysts, how­ever, ex­pect that the cur­rency will not con­tinue to rise as strongly in the com­ing months if the dol­lar re­bounds. The yuan’s mid­point rate, set by the Peo­ple’s Bank of China and seen as a guide for mar­ket trans­ac­tions, was 191 ba­sis points higher than on Aug 29, when it al­ready had risen by 60 ba­sis points over Aug 28. The yuan has risen by about 5 per­cent against the dol­lar since the start of the year. “The strength­en­ing is built on China’s eco­nomic fun­da­men­tals,” says Zhao Qing­ming, chief econ­o­mist at the China Fi­nan­cial Fu­tures Ex­change. “The trend is clear that the Chi­nese econ­omy has started to sta­bi­lize and im­prove while the US eco­nomic re­cov­ery seems to be rather fragile.”

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