Chinese Policymakers Appear at Ease with Stronger Yuan
Dow Jones10-12 19:43
1143 GMT - The Chinese renminbi's recent appreciation shows policymakers remain comfortable for the currency to strengthen as risks to trade from President Trump's tariffs have eased, MUFG Bank's Lee Hardman says in a note. "Upward momentum for the renminbi has been encouraged by the People's Bank of China setting lower daily fixes for dollar-yuan over the past month even as the dollar index has strengthened by around 4%." Policymakers should continue to allow the renminbi to strengthen gradually to limit the impact on trade relations given the EU's pushback against China's widening trade surplus with Europe, he says. The dollar trades flat at 6.6925 yuan, having reached a 45-month low of 6.6913 earlier, according to LSEG.
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