Yuan Declines on PMI Figure
The Chinese yuan fell today after the worse-than-expected manufacturing report. The uncertainty about the policy decisions of the Federal Reserve and the European Central Bank also made traders reluctant to buy risky currencies.
The China Federation of Logistics and Purchasing reported that Manufacturing Purchasing Managers’ Index was at 50.1 in July, while market participants hoped for the figure of 50.4. The yuan fell after the report even as the People’s Bank of China raised the reference rate by 0.02 percent to 6.3305 yuans per dollar. The MSCI Asia Pacific Index of shares lost 0.5 percent, posting its first decline in a week.
USD/CNY rose from 6.3628 to 6.3697 as of 10:09 GMT today.
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Earlier News About the Chinese Yuan:
- Surprise from China: PBoC Lowers Interest Rates, Yuan Falls (2012-07-05)
- Yuan Gains on Better-Than-Expected Manufacturing PMI (2012-07-02)
- Yuan Fluctuates on Mixed Fundamentals (2012-06-28)
- Yuan Gains as Wen Promises to Boost Growth, Retreats (2012-05-21)
- Chinese Yuan Falls as Greece Damps Demand for Riskier Assets (2012-05-16)