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China’s Yuan Jumps to Highest Since 2015 as Trade Tensions Ease

China’s Yuan Jumps to Highest Since 2015 as Trade Tensions Ease
админ
27/03/2018

Chinas Yuan 300x200 - China's Yuan Jumps to Highest Since 2015 as Trade Tensions Ease

China’s currency rallied to the highest level in almost three years amid signs that a trade war may be averted, before paring gains.

The yuan surged as much as 0.6 percent to 6.2418 per dollar on Tuesday, extending yesterday’s advance, to trade at its highest level since a devaluation in August 2015. The exchange rate was 0.1 percent higher at 4:23 p.m. local time. The nation’s stocks climbed, while 10-year government bonds were steady.

Gains in the currency came as the Trump administration was said to be urging China to lower tariffs on cars and open its market to U.S. financial services as part of talks to resolve a rise in trade tensions. Adding to the bull case was last Friday’s announcement that China’s yuan-denominated bonds will be included in the Bloomberg Barclays Global Aggregate Index, which could prompt inflows of around $110 billion, according to Goldman Sachs Group Inc.

“Market sentiment has become more optimistic versus last week amid signs that both sides are willing to talk,” said Gao Qi, Singapore-based strategist at Scotiabank

The currency is also gaining as the People’ Bank of China hasn’t signaled it will slow appreciation at any particular level, which may mean the yuan will test 6.2 per dollar soon, said Tommy Xie, an economist at Oversea-Chinese Banking Corp. in Singapore.

The yuan is heading for a fifth straight quarter of gains, its best winning streak in four years. The Shanghai Composite Index climbed 1.1 percent on Tuesday, while the yield on 10-year bonds held at 3.74 percent.

Source

Related ItemsBank of ChinaChinacurrencyforexIndexmarketrateriseShanghaiSingaporetradetrade warTrumpyuan

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news
27/03/2018
админ
Related ItemsBank of ChinaChinacurrencyforexIndexmarketrateriseShanghaiSingaporetradetrade warTrumpyuan

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