The Chinese yuan on Monday increased in value against the U.S. dollar on Monday, pushing to its three-week high against the U.S. dollar amid notable activity by both nations' central banks, Bloomberg reports.
The monetary unit of the world's second-largest economy rose 0.09 percent against the U.S. dollar, noting its biggest advance since the end of last month. The central bank of China pushed up the daily fixing to an all-time high, driving it up by 0.01 percent to 6.1598 on Monday. The U.S. Federal Reserve is slated to convene two days of meetings beginning on Tuesday.
"Investors are pulling back, softening capital inflows, and not only the yuan but other Asian currencies are weakening as well," economist Ho Woei Chen with United Overseas Bank Ltd. in Singapore. "The pace of yuan gains could slow or it could depreciate. But, for the year, we still see appreciation possible."
Governor Zhou Xiaochuan with the People's Bank of China told Chinese television earlier this week that the institution he leads is not deliberately distilling the renminbi to drive competition.
The deficit between the onshore and offshore rates is slowly decreasing, according to The Wall Street Journal.
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