Bloomberg
Published Jun 07, 2019 01:18AM ET
Updated Jun 07, 2019 01:40AM ET
Yuan Falls as PBOC's Yi Hints No Red Line, Open to Easing
(Bloomberg) -- The offshore yuan fell the most in a week, as China’s central bank chief hinted there’s no line in the sand for the currency and that he’s willing to ease policy to protect the economy from trade-war fallout.
The Chinese currency dropped as much as 0.2%, the most since May 31, before paring its loss slightly to trade at 6.9388 per dollar. The nation has “tremendous” room to adjust its fiscal and monetary toolkit if trade tensions worsen, and no number is more important than another for the yuan’s exchange rate, People’s Bank of China Governor Yi Gang said in an exclusive interview with Bloomberg.
His comments came amid intensifying debate over whether and when the yuan may weaken past 7 per dollar, a level that hasn’t been touched since the global financial crisis. The Chinese currency has stabilized of late, after tumbling in May, as a growing chorus of officials and state media issued verbal support.
Here’s what analysts said about Yi’s comments and the yuan:
National Australia Bank (Christy Tan, head of markets strategy)
Nissay Asset Management (Toshinobu Chiba, chief portfolio manager of fixed-income investment department)
Scotiabank (Gao Qi, strategist)
Westpac Banking (Frances Cheung, head of Asia macro strategy)
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.