FX Update

The PBOC calmed markets with an unaggressive daily currency fix

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Financial markets were calmed by the People's Bank of China setting the daily USD/CNY fixing lower and less aggressively than analysts had expected. Asian and European stocks rose overnight, and bond yields edged higher. At the same time, the White House is preparing to place tariffs on $300 billion of Chinese imports on September 1. Oil prices jumped after Saudi Arabia contacted other producers to stem the fall in prices. Currency markets were little changed.

“Remember that the storm is a good opportunity for the pine and the cypress to show their strength and their stability.”
Ho Chi Minh
  • FX Rates
    August 8, 2019

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.

  • USD

    The dollar made slight gains overnight, reversing this week’s sell-off which had been triggered by the unexpected move in the Chinese yuan past the key RMB 7 per USD level on Monday. The dollar’s biggest gain was against the Japanese yen, which has benefited as a safe haven currency.


    The UK pound moved little overnight, even after UK PM Boris Johnson said he fully expects to face a confidence vote after parliament returns from its summer recess.


    Little change in the euro was seen overnight as markets were calmed by the PBOC and there were no key EU economic data releases.


    The Canadian dollar edged higher overnight. Oil prices had jumped when a Saudi official said that they had phoned other oil producers to halt oil’s slide in prices.


    Even after the US officially labeled China a “currency manipulator” early in the week, China has been unaggressive in its response. It set this morning’s USD/CNY reference rate at 7.0039 yuan per dollar, the weakest level since 2008, but lower than market expectations. The currency pair is trading near 7.0450, as traders are still bullish.


    The Indian rupee reversed a five-day losing streak against the dollar following reports that India will roll back a tax surcharge on foreign portfolio investors. The USD/INR dropped to 70.55 after reaching 70.98 yesterday.

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Scott Petruska, CFA
Scott Petruska, CFA

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