ব্যঙ্গাত্মক বর্ণনা এবং ফরেক্সের প্রবেশদ্বার বিন্যাস
Chinese yuan reaches new peaks
China’s currency is back on the rise! The yuan is charging full speed ahead, aiming to dominate the financial market. Following a recent surge, the Chinese currency hit its highest level in a year and surpassed it. In this environment, traders are considering corporate purchases of yuan, especially as the US dollar shows signs of weakness.
The offshore yuan gained 0.3%, reaching 7.0752 per US dollar, the highest level since June 2023, experts highlight. In August, the yuan advanced by 2%, offsetting previous losses and gaining 0.7% against the dollar in 2024.
Many analysts predict that by the end of 2024, the dollar/yuan exchange rate could fall to 7.0-7.1. Interestingly, state banks were buying US dollars at 7.0910 yuan, capping the rise of the national currency.
As for the onshore yuan, it surged significantly after the People's Bank of China raised the daily reference rate to a two-month high of 7.1124. Analysts note that the yuan has benefited from rising market expectations that the US Federal Reserve will soon lower interest rates. Against this backdrop, many traders and investors have been selling dollars and buying yuan. Since Chinese exporters hold substantial foreign currency reserves, some speculate that they will be keen to sell more dollars in the current situation.
According to Asian currency strategists, China's economic stimulus measures will support the yuan after the reversal of the bearish trend.
Experts believe the yuan’s recent growth was driven by the unwinding of a previous strategy where traders borrowed yuan at low rates and sold it at a profit.
However, many analysts also caution that the yuan may soon face pressure from sluggish growth as consumer spending slows, and Chinese authorities hesitate to introduce substantial economic stimulus packages.
প্রকাশিত 05 September 2024
© InstaFintech Group
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© InstaFintech Group
