The yuan inched up on Wednesday after China\u2019s foreign ministry spokesperson Lu Kang said the country has no intention of using \u201ccompetitive devaluation.\u201d<\/p>\n
Lu said at a regular news briefing that the recent accusations U.S. officials made against China of intentionally weakening the currency to help exporters had been \u201cgroundless speculation and irresponsible.\u201d<\/p>\n
Bloomberg reported on Tuesday that a senior U.S. treasury official expressed concern at the fall in the yuan and that Washington was considering naming China as a \u201ccurrency manipulator\u201d in a report due next week.<\/p>\n
The\u00a0<\/span>USD\/CNY<\/a><\/span>\u00a0<\/span>pair slipped 0.03% at 6.9304 by 12:30AM ET (04:30 GMT) as the People’s Bank of China (PBOC) set the yuan reference rate at 6.9072 vs the previous day’s fix of 6.9019.<\/p>\n Elsewhere,\u00a0<\/span>a Reuters poll<\/a><\/span>\u00a0<\/span>showed that the yuan could potentially pare some of its recent losses in 2019 as traders expected trade tensions with the U.S. and sell-off in emerging markets would eventually subside.<\/p>\n The poll of over 50 foreign exchange strategists suggested that the Chinese currency would trade at 6.80 per dollar in 2019.<\/p>\n “The most likely scenario for a strong CNY rebound against USD is for risk-on sentiment to resume again. This will likely only come when the negativity from U.S.-China tensions and EM risks fades,” said Jeff Ng, Asia chief economist at Continuum Economics.<\/p>\n “We believe that the most likely trigger would be a resolution of U.S.-China trade talks, given the unpredictable nature of U.S. President Donald Trump. Other possible triggers could also stem from a stronger trade relationship between China and Europe or investors finally finding another positive reason to put risk on the table again.”<\/p>\n Trump\u2019s administration\u202fannounced in September that it imposed 10% tariffs on $200 billion of Chinese goods.<\/p>\n U.S. President Donald Trump, in a statement, said that the tariffs would rise to 25% in January 2019,\u202fadding that\u202f”if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”<\/p>\n In the same week, Beijing announced\u202fretaliatory tariffs that targeted\u202fmore than 5,000 U.S. products worth $60 billion. The new tariffs would take effect on Sep 24, China\u2019s Ministry of Finance said in a statement. The country\u2019s commerce ministry also filed a complaint to the World Trade Organization (WTO) against the U.S., according to reports.<\/p>\n The\u00a0<\/span>U.S. dollar index<\/a><\/span>\u00a0<\/span>that tracks the greenback against a basket of other currencies was down 0.1% to 95.29. The index reached 96.163 earlier in the week, its highest level since Aug. 20.<\/p>\n The\u00a0<\/span>USD\/JPY<\/a><\/span>\u00a0<\/span>pair was up 0.1% at 113.06, while the\u00a0<\/span>AUD\/USD<\/a><\/span>\u00a0<\/span>pair also gained 0.2% at 0.7119.<\/p>\n","protected":false},"excerpt":{"rendered":" The yuan inched up on Wednesday after China\u2019s foreign ministry spokesperson Lu Kang said the country has no intention of using \u201ccompetitive devaluation.\u201d Lu said at a regular news briefing that the recent accusations U.S. officials made against China of intentionally weakening the currency to help exporters had been \u201cgroundless Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[9,10,1],"tags":[],"class_list":["post-1010","post","type-post","status-publish","format-standard","hentry","category-homepage","category-latest-news","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/comments?post=1010"}],"version-history":[{"count":1,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1010\/revisions"}],"predecessor-version":[{"id":1011,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1010\/revisions\/1011"}],"wp:attachment":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/media?parent=1010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/categories?post=1010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/tags?post=1010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}