Yuan falls to the dollar. What caused?

in the morning of June 28, Chinese national currency falls regarding the American one. The reason for this is called the statements of the head of the People’s Bank of the PRC and Ghana about the continuation of the stimulation of monetary policy to support the economy of the Middle Kingdom. This becomes known, based on the analysis of the currently ongoing bidding.

What happens on a forex market this morning?

at 8:00 a cash unit of the United States rose to the Chinese to 6.6803 Yuan. At the same time, the euro fell to the American currency to $ 1.0575, While during the day earlier he completed the trading session with a value of $ 1.0583. On this day, the dollar, on the contrary, decreases to Japan’s national currency: to 135.34, yen from previous marks of 135.43 yen. As for the American dollar index among monetary units of US trade partners – today it increases by 0.03%, to 103.97 points.

What affects a couple of US dollar/yuan?

Tax trading were marked for the Chinese yuan with a fall to the dollar. Analysts argue that the application of the head of the People’s Bank of China is all to blame And Ghana, who spoke about the continuation of followed by a rigid monetary policy, like other global central banks.

foreign currency traders are sure that such rhetoric, together with fluidity in open markets a few days ago, create huge pressure on the Yuan.

What do experts say about this?

Assessing the current situation, Forex market specialists give positive forecasts. They are sure that the decrease in the yuan course is a cyclic and familiar phenomenon that should not be worried about Until the People’s Bank does not soften its policy to the limit.

Separate traders say that they do not make hasty conclusions until the publication of statistical data. For example, this week a report should be released in terms of production activity for June in the Middle Kingdom.

Victor, financial analyst LBLV

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