The efforts of the People's Bank of China (PBOC) to stabilize the
currency rates did not hinder the market from testing how low the
renminbi can go during the last week of January.
The renminbi plummeted by nearly 2%–the maximum trading range permitted by regulators–during the Jan. 29 session after the PBOC set the daily reference price of the renminbi against the US dollar 0.0053 yuan (US$0.0008) lower to 6.1335 yuan (US$0.98).
It was the third nearly 2% drop during the four sessions of the week despite the PBOC's reference price showing a rise of 0.0049 yuan (US$0.0008) during that period.
The Chinese currency has shed 3.5% against the greenback in the spot market for the month as of Jan. 29 and saw a record 1.95% intra-session decline on Jan. 28.
Although the PBOC attempts to stabilize the price of the renminbi through the management of the daily mid-point price for the foreign exchange market, analysts said that the nearly 2% declines during recent sessions showed the bearish sentiment toward the Chinese currency.
They also said the concern that central banks around the world may decide to weaken their currencies after several countries unexpectedly introduced monetary easing measures.
Read more Click here / www.trade4x.net
The renminbi plummeted by nearly 2%–the maximum trading range permitted by regulators–during the Jan. 29 session after the PBOC set the daily reference price of the renminbi against the US dollar 0.0053 yuan (US$0.0008) lower to 6.1335 yuan (US$0.98).
It was the third nearly 2% drop during the four sessions of the week despite the PBOC's reference price showing a rise of 0.0049 yuan (US$0.0008) during that period.
The Chinese currency has shed 3.5% against the greenback in the spot market for the month as of Jan. 29 and saw a record 1.95% intra-session decline on Jan. 28.
Although the PBOC attempts to stabilize the price of the renminbi through the management of the daily mid-point price for the foreign exchange market, analysts said that the nearly 2% declines during recent sessions showed the bearish sentiment toward the Chinese currency.
They also said the concern that central banks around the world may decide to weaken their currencies after several countries unexpectedly introduced monetary easing measures.
Read more Click here / www.trade4x.net
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