Chinese yuan hits eight-month low as commodities currencies continue slide
By Summer Zhen
HONG KONG, July 24 (Reuters) -China's yuan slipped to its lowest point in more than eight months on Wednesday as commodities-linked currencies broadly lost further ground on a bleak outlook for Chinese demand.
Funding conditions remained tight offshore CNHTN=, however, making it costly for investors to short the yuan and limiting yuan losses, market participants said.
As of 0324 GMT, the yuan CNY=CFXS was 0.01% lower at 7.2756 to the dollar. It traded between 7.2700 and 7.2770 during the morning.
Over the past two weeks, China-linked currencies have tracked a pullback in commodity prices while the U.S. dollar has also been supported as traders wait on crucial growth and inflation readings for the U.S. economy.
"The dollar remains quite a strong currency, our forecast is the dollar to grind higher against RMB from current levels, even after the Fed starts to cut," said Joey Chew, head of Asia FX research at HSBC.
Prior to the market opening, the People's Bank of China set the midpoint rate CNY=PBOC, around which the yuan is allowed to trade in a 2% band, at 7.1358 per dollar. That was its weakest since November 2023 although it was still 1,437 pips firmer than a Reuters' estimate.
The central bank has been gradually lowering its daily yuan official guidance with a bias suggesting it is allowing some depreciation, traders and analysts said.
Spot yuan CNY=CFXS opened at 7.2700 per dollar and was last trading 9 pips lower than the previous late session close and 1.96% weaker than the midpoint.
The yuan is down 0.1% against the dollar this month, and 2.4% weaker this year. It has been under pressure since early 2023, hurt by a moribund Chinese property sector, anaemic consumption and falling yields.
More recently, few catalysts from the long-awaited Third Plenum's policy updates have also hurt sentiment towards the yuan and Chinese stocks.
BofA Securities analysts said China's rate cuts this week were a concession that monetary easing is needed to support growth.
"Our expectations for CNY appreciation are pushed back to 2025," they said.
Offshore yuan traded at 7.287 yuan per dollar CNH=, up about 0.03% in Asian trade.
The dollar's index =USD was flat at 104.48.
Key onshore vs offshore levels:
Overnight dollar/yuan swap onshore -7.85 pips vs. offshore -7.85
Three-month SHIBOR SHIBOR= 1.9 % vs. 3-month CNH HIBOR 3.2 %
LEVELS AT 03:23 GMT GMT
INSTRUMENT | CURRENT vs USD | UP/DOWN(-) VS. PREVIOUS CLOSE % | % CHANGE YR-TO-DATE | DAY'S HIGH | DAY'S LOW |
Spot yuan <CNY=CFXS | 7.2756 | -0.01 | -2.39 | 7.27 | 7.277 |
Offshore yuan spot CNH=D3 | 7.2871 | 0.03 | -2.22 | 7.2854 | 7.2915 |
Reporting by Summer Zhen; Editing by Tom Westbrook and Edwina Gibbs
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
