Straits Times Index
2,949.04-24.50(-0.82%)Nikkei
28,966.01-1,202.26(-3.99%)Hang Seng
28,980.21-1,093.96(-3.64%)
USD/CNY (CNY=X)
- FX Empire
Emerging Asian Currencies Finish Year on Strong Note as Vaccine-Hope Raises Outlook for Global Economy
Setting in motion much of the movement in the region was the extremely strong Chinese Yuan.
- Reuters
Exclusive: China comfortable with yuan rises for now as economy recovers, sources say
Chinese policymakers are comfortable with the yuan's rise to 2 1/2-year highs as a rebound in the world's second-biggest economy accelerates and the central bank gives the market greater leeway in setting the currency's value, sources said. But the central bank might take action if further rises in the closely managed currency, especially if they were rapid, were to hurt the country's exports, the sources involved in internal policy discussions told Reuters. Amid broad expectations for further yuan gains and more prolonged weakness in the dollar, the PBOC's acceptance of the currency's rise runs counter to recent market speculation that the bank might take steps to stabilise the rising yuan.
- Bloomberg
Asian currencies decouple from yuan in two-speed recovery
Counting on China as an anchor of strength has been a good tactic for traders of Asia’s emerging currencies. That link is losing traction as recovery paths from the coronavirus pandemic diverge.
