The Chinese yuan on Wednesday edged up against the world's reserve currency in advance of two days of national holiday observation, The Wall Street Journal reports.
The renminbi rose as a result of the People's Bank of China setting a fixing rate that was slightly lower than the rate from Tuesday. Chinese markets are closed for the Mid-autumn Festival on Thursday and Friday. The currency of the globe's second-largest economy is likely to be impacted by the decision of U.S. Federal Reserve policy makers, who are poised to adjourn two days of meetings regarding stimulus measures on Wednesday afternoon.
"The central parity will continue to trend lower. But it doesn't mean the yuan will also rise on the spot market," a trader in Shanghai at a local bank told The Wall Street Journal on Wednesday. "The Chinese yuan is looking for direction. The consolidation mode will likely extend into the next couple of weeks before the end of a key policy meeting."
The daily fixing rate established by the PBOC has fallen about 0.2 percent since the beginning of September.
China acquired more U.S. Treasuries in July as conjecture swirled about the Fed preparing to slash economy-spurring monetary stimulus measures, according to Bloomberg.
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