The monetary unit of China neared its record high against the world's reserve currency on Thursday and is heading toward its top weekly performance against its rival since this past May, The Wall Street Journal reports.
The monetary unit of the world's second-largest economy has advanced about 0.42 percent this week against the currency of the globe's largest economy. The yuan climbed as a result of U.S. political leaders stating they agree on a debt ceiling increase in advance of the Thursday night deadline. Also propelling the renminbi higher on Thursday was confidence about China's capacities to tolerate a strong currency.
The yuan was within a 0.01 percent range of its top value against the greenback.
The yuan has climbed about 2.2 percent against the U.S. dollar thus far this year. Its performance has been stronger than that of the South Korean won, which trails the yuan for Asian nations against the dollar. The currency of South Korea has climbed roughly 0.5 percent against the dollar thus far this year.
Seven of eight buyers and exporters surveyed by The South China Morning Post at a popular trade show said they are confident the yuan will continue pushing higher against its cross-Pacific rival.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.