The Chinese yuan is hovering around its lowest level since May 2017 on Wednesday as the equities market plunged,
The Hang Seng China Enterprises Index slipped 2%, the MSCI’s
Traders are still paying attention to the
And this is having an incredible impact on the national economy. This week, new data found that retail sales slowed in July,
As a result of the tepid economic data, the federal government has vowed to introduce stimulus efforts, such as easing credit, spending more on infrastructure, and preventing financial troubles from popping up across the economy. The People’s Bank of China (PBOC), meanwhile, will introduce tools to stabilize the currency, but it confirmed that it will not use the yuan to gain leverage in the trade spat with the US.
The Chinese yuan is expected to be under pressure for the next few months, but much of what has been occurring – trade war, sluggish economic growth, and Turkey’s economic demise – are gradually being priced in by the market. Plus, China is attracting a lot of foreign attention, primarily because bonds are considered
The USD/CNY currency pair surged 0.74% to 6.9348, from an opening of 6.8841, at 16:58 GMT on Wednesday. The EUR/CNY is also gaining, tacking on 0.76% to 7.8686, from an opening of 7.8105.
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