INSIDE CHINA: Yuan Rises After Stronger Than Expected Fixing
(Bloomberg) -- USD/CNY falls back below 6.700 after PBOC sets reference rate at 6.6971, just 0.01% weaker than yesterday.
- Still is weakest CNY fixing since Oct. 28, 2010
- CNY up 0.05% at 6.6987 per USD; fell as far as 6.7030 yesterday, weakest since Sept. 2010
- Offshore yuan little changed
- Model suggested fixing should have weakened 0.1% to above 6.7: ANZ
- Yuan has demonstrated a clear trend of depreciation, but the downturn is very gradual and controlled to suppress aggressive speculation, says Ray Farris, head of Asia macro strategy at Credit Suisse
- Fixing largely a policy decision
- Forecasts USD/CNY at 6.8 in three months; capital outflow to continue, driven by declining domestic rate
- If PBOC shows little intention to defend yuan at 6.7 vs USD, it could fall to 6.8 in weeks: Commerzbank
- Yuan will continue depreciating this year, but at a slower pace, according to a Bloomberg survey of analysts and traders; median est. sees it falling another 1.4% to 6.795 by yr-end
- China said to be setting up first immigration office to lure overseas talent
- TPP to sink without China, Sri Lanka’s prime minister says
- U.S. and China navy chiefs meet in Beijing
- Govt to test allowing financial institutions to hold stakes in companies
- PBOC injects 227b yuan liquidity via MLF operations
- PBOC to auction 50b yuan of MOF deposits at banks
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HALISTER1Source: BFW (Bloomberg First Word)
People Ray Farris (Credit Suisse Group AG)
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