RMB Update - RMB supported by USD weakness(1)FX Daily; FX Outlook; AsiaMay 03, 2016 Posted by Fernand Kong, CFA Read More0 Comments
o Given the overall weakness in USD, PBOC set the onshore CNY fixing rate at 6.4589 against the USD last Friday, up 365 basis points from Thursday. It was the biggest upward move since 2005.
o USD dropped to its lowest level in 18 months against the JPY after the Bank of Japan’s decision to refrain from further easing disappointed markets.
o China’s Manufacturing Purchasing Manager index (PMI) at 50.1 in April, Vs estimate of 50.3 and 50.2 in March.1
o The State Administration of Foreign Exchange (SAFE) said on Friday that it will allow banks to issue more FX-related FX products for hedging purpose, and hold bigger short-USD positions at the end of day. 2
o USD/CNH exchange rate has been range-bound.
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