As stock sell-off sweeps Asia, China’s yuan surges as US rate cuts loom

Quick Summary:

Onshore yuan rallied to a high of 7.1150 per US dollar during morning trading, the strongest level since January 2.

The fixing limits the onshore yuan’s moves by 2 per cent on either side and is often used by the market to gauge the official stance towards the foreign exchange market.

In a carry trade, an investor borrows in a currency with low interest rates, such as the yen, and reinvests the proceeds in a currency with a higher rate of return.

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Article Details

Author / Journalist: Amanda Lee

Category: Business

Markets: Hong KongChinaFranceJapanSingaporeSweden

Topics: Cent Monday Currency Interest Dollar Support Cuts Rates Exchange Yuan Rate

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-08-05 @ 16:09:22 (6 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 715 words

Reading Time: 4 minutes read

Sentences: 19 lines

Sentence Length: 38 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 21930524

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