Futures Market News
Yuan slips as greenback strengthens
Sep 21, 2012 11:26 AM
The Chinese yuan slipped on Friday against the U.S. dollar after the People's Bank of China provided guidance that drew down the monetary unit of the globe's second-largest economy, The Wall Street Journal reports.
Also pulling down the yuan was the strengthening U.S. dollar, the currency of the globe's largest economy. But the Chinese currency is forecast to recover in the short term since demand for it typically increases as the quarter draws to a close.
"A big Chinese bank started dumping dollars, and smaller players followed the wave, pushing the rate below 6.30. Actually the euro was already falling, but people weren't focused on that," a trader at an Asian bank in Shanghai told The Economic Times, noting the yuan often tracks the euro. "When the big banks come out to play, people tend to think it represents the central bank's intention. But in the afternoon, the market stepped back and started to consider things rationally."
China caused concerns to mount about the global economy when it released weak economic data on Thursday.
The yuan's Friday session began with losses but in the afternoon it reversed that trend and gained, according to The Economic Times.
Don’t Miss Our News Updates!
Share dt News:
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Insider Market Advisory FREE Trial
Information is power. Gain an edge with daily commodity futures market updates!
With your free trial membership, you’ll receive full access to trade analysis and recommendations for various markets, daily fundamental and technical market overviews, future price outlooks, and more!
Special Offer
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.
