The PBOC has been trying to pump the brakes on the recent decline in the yuan but they're now struggling to draw a hard line on that with USD/CNY brea
The PBOC has been trying to pump the brakes on the recent decline in the yuan but they’re now struggling to draw a hard line on that with USD/CNY breaching past 7.00 once again today. The yuan fixing today was also one of the strongest positive bias for the local currency (relative to estimate) but still that hasn’t been enough.
It’s tough to keep at that while maintaining a more easy policy in order to try and bolster the economy, which is still suffering amid ongoing restrictive policies when it comes to dealing with the pandemic. I talked about how the situation may be much worse than what is seen on the surface with monetary policy alone just not cutting it for China here.
In any case, what’s bad for the yuan bodes well for the dollar and in the context of trading sentiment today, this is another point in the bullish dollar column as we get towards European trading.
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