China’s yuan returns close to four-month highs

SHANGHAI, Oct 25 (Reuters) – China’s yuan returned close to the four-month highs struck late last week, amid heavy corporate dollar selling on Monday morning despite expectations that the U.S. Federal Reserve will reduce asset purchases at some point to tighten monetary policy.

The yuan CNY=CFXS opened at 6.3883 per dollar and was changing hands at 6.3832 at midday, slightly firmer than the previous late session close.

The People’s Bank of China set the midpoint rate CNY=PBOC at 6.3924 per dollar prior to market open, firmer than the previous fix of 6.4032.

Last week, China’s yuan posted its biggest weekly gain against the greenback in five months on the back of strong corporate dollar selling. China’s foreign currency regulator attributed the yuan’s strength to market forces, and a more flexible trading mechanism.

Source: https://www.nasdaq.com/articles/chinas-yuan-returns-close-to-four-month-highs-2021-10-25