China's Yuan Suddenly Retreats the Most in Three Weeks
Bloomberg
Published Jul 29, 2019 05:12
Updated Jul 29, 2019 06:53
China's Yuan Suddenly Retreats the Most in Three Weeks
(Bloomberg) -- China’s yuan suddenly dropped on Monday morning to end a long spell of subdued trading.
The offshore yuan fell 0.21% to 6.8948 a dollar as of 11:45 a.m. in Hong Kong. The yuan traded onshore was down 0.19% as the worst performer among 31 major currencies.
Yuan liquidity in Hong Kong was loose, making it cheap to short the currency. The overnight Hibor has tumbled 134 basis points in the past five sessions, the longest slump since December.
Tiny moves in the yuan had turned it into the world’s dullest currency lately. Investors had been waiting to see what the next development in U.S.-China trade dispute will be. Chinese and American negotiators are set to meet again this week in Shanghai. They’re also watching to see how the People’s Bank of China will respond if the Federal Reserve cuts interest rates later this week, as expected.
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Written By: Bloomberg
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