The Chinese yuan spearheaded Asian currencies' climb in value against the world's reserve currency on Tuesday as the renminbi rose after scraping its lowest value since late 2012 last week, according to Bloomberg.
Market sentiment indicated the yuan's recent slippage was overdone. The People's Bank of China pulled down the daily exchange rate by 0.01 percent. The currency's recent volatility is expected, Payment Balance Department Head Guan Tao with the State Administration of Foreign Exchange stated in a column in a trade publication.
"It appears to be a fairly constructive outlook for Asian currencies in the near term," states a Tuesday client note authored by Scotiabank, according to Reuters. "We feel that MYR, KRW and PHP should certainly benefit, and believe that there is definite value in being long CNH at current levels considering that the market seems resistive to pushing too far past 6.25 in the topside in USD/CNH."
The yuan rose roughly 0.32 percent against the greenback on Tuesday after climbing about 0.22 percent against its rival on Monday.
The yuan also climbed after data noted the U.S. services sector developed in April at its quickest pace in eight months, according to Reuters.
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