The Chinese yuan is struggling to find direction on Tuesday as the federal government released economic data that should trouble both officials and investors. Analysts do warn that the currency may get a lift on state stimulus amid the lingering trade dispute between the world’s two largest economies.
The Japanese yen gained intraday on risk aversion but has trimmed its gains by now. Currently, the yen trades above the opening level against the US dollar, flat versus the euro, and below the opening against the Great Britain pound.
The euro today declined significantly against the US dollar as the US 10-year Treasury yields hit a 7-year high and investors reacted to the prospect of lower global economic growth. The tensions between Italy and the European Union regarding the latter’s budget plans also dragged the pair lower.
The Japanese yen is rising modestly against its counterparts on Friday after new data suggests the country’s economic recovery is holding steady. But the International Monetary Fund (IMF) issued a report that urged Tokyo to take a breather and not declare victory just yet.
The Chinese yuan is strengthening on Tuesday after a Wall Street giant forecast that the world’s second largest economy will soon become the biggest economy in the world by 2030. The currency’s gains were capped on the intensifying trade dispute between Beijing and Washington, as well as a report that China may scrap a popular home pre-sale system.
The Japanese yen is holding steady on Monday as the national economy grew at its fastest pace in two years during the second quarter. Japan’s economic outlook for the rest of 2018 might be gloomy because of recent natural disasters and potential trade tensions with the US.
The South African rand is sliding to its lowest level in more than a week after the government warned of a national “catastrophe” should its controversial land reform program fail to take place. South Africa has been under the spotlight in recent months after domestic leaders have been pressing land reform as a way to eliminate inequality and facilitate racial justice, something that has drawn international support.
The Chinese yuan weakened against the US dollar and a basket of currencies on Tuesday. Despite some modest gains in July, the currency is still hovering around a 13-month low, leaving many traders and world leaders wondering if Beijing is manipulating the yuan.
The Chinese yuan continued its slide on Friday as the currency fell beyond its 13-month low. Despite the US government hinting that the central bank is purposely debasing the yuan, the International Monetary Fund (IMF) said it is “fairly valued.”
The Chinese yuan fell to its lowest level since June 2017 after the federal government vowed to adopt a more proactive fiscal initiative, reversing a previous policy of winding down stimulus efforts and unloading debt. This comes as the US government promised it would keep a close eye on potential currency manipulation by the world’s second-largest economy.
