Yuan Opens up Against Greenback
Tang Shihua
DATE:  Feb 13 2019
/ SOURCE:  yicai

(Yicai Global) Feb. 13 -- The Chinese yuan started the day rebounding from yesterday's retreat, when investors were struck with shyness in the face of another round of high level China-US trade talks.
 

The onshore yuan's spot rate opened at 6.7600, 115 points stronger than the 6.7715 at the close of last night's trading. The offshore spot exchange rate was 6.7681 in the early morning.
 

The country's central bank the People's Bank of China set the central parity rate between the two currencies at 6.7675 today, 90 basis points higher for the redback than yesterday.  
 

The yuan has leeway to rise or fall by 2 percent in deviation from the central parity rate each trading day in China's spot foreign exchange market.
 

The Chinese currency had been in an upward trend against the dollar for more than two months, ascending a cumulative 2.6 percent against the buck on the onshore market last month alone, but it has been in defensive posture from the start of this month, when the US dollar index staged a resurgence. 
 

The world's largest and second-largest economies will sit for cabinet-level talks from Feb. 14-15 in Beijing to wear down their remaining bones of contention before a March 2 deadline when more tariffs take effect.


Editor: Ben Armour 

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Keywords:   CNY,CNH,US Dollar,Foreign Exchange Market,Central Parity Rate