Chinese Yuan Hits Four-Month High Against US Dollar

Chinese Yuan Hits Four-Month High Against US Dollar

Xu Wei

Date: Mon, 01/08/2018 - 21:21 / source:Yicai
Chinese Yuan Hits Four-Month High Against US Dollar
Chinese Yuan Hits Four-Month High Against US Dollar

(Yicai Global) Jan. 8 -- The onshore and offshore Chinese yuan hit four-month highs against the US dollar, surpassing CNY6.48 and CNY6.47, respectively, on the morning of Jan. 8, driven by a strengthening dollar.

The onshore yuan rose over 100 points reaching a maximum of CNY6.4739, while the offshore yuan peaked at CNY6.4688, representing their highest levels since Sept. 8, 2017.

The central parity rate parity, set by China Foreign Exchange Trading System, for Jan. 9 is 6.4832, its highest level since May 3, 2016.

The US Dollar Index (USDX) has weakened recently, declining from 94.219 on Dec. 12 to 91.737 as of last week and it remains weak at around 92.

Non-farm payrolls increased by 148,000 in the US in December, data from the US Department of Labor show, considerably less than the expected 190,000, and not conducive to the dollar.

"In the near future, as short-term factors recede, the yuan exchange rate may see a callback,” said Sheng Songcheng, a counselor to the People’s Bank of China, the country’s central bank, in response to the recent strengthening of the rate during the 2018 China Chief Economist Forum on Jan. 6. 

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Keywords: RMB, USD