Concerns are full-blown about the economic slowdown in the Asian county. The current-account surplus during the first quarter of this year registered $7.2 billion after checking in at $47.6 billion during the same period of 2013.
"The overriding focus for fx policy will be to continue to induce more volatility into the onshore exchange rate, which should help discourage hot-money inflows," states a Friday report authored by HSBC strategists, according to Bloomberg.
The renminbi edged down about 0.08 percent against the U.S. dollar on the final trade day of the week. During the past week, the yuan has slumped 0.47 percent against the greenback. China's currency, which supports the globe's second-largest economy, has fallen 3.2 percent thus far this year against the dollar, which supports the globe's biggest economy.
Analysts and investors are losing faith about the medium- and near-term performance, CNBC reports. The People's Bank of China is likely to widen the trade band, they told the news source.
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.