Yuan Weakens Below 6.80 for First Time as Strong Dollar Delays US Rate Hike
Yicai Global
/SOURCE : Yicai
Yuan Weakens Below 6.80 for First Time as Strong Dollar Delays US Rate Hike

(Yicai Global) Nov. 11 -- The yuan's central parity rate against the dollar fell below 6.80 for the first time, as some insiders said the US Federal Reserve will hold off on raising interest rates because of dollar strength.

The yuan fell to 6.8115

"It's related to the apparent weakening of the Japanese yen and President-elect Trump's stress on investments in infrastructure when he assumes power which may drive up the American economy," said Xie Yaxuan, macro-economic analyst at China Merchants Securities Co.

"Strong dollar momentum will support future growth and US economic fundamentals. The actual dollar index has gained 10 percent in a broad sense, while after three years the downward rate of the gross domestic product may be 1 to 1.5 percentage points. Undoubtedly, it will slow down the raising of interest rate by the FED to restrain the degree of the further upward momentum of the dollar index," Xie added.

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