Open Live Account

(Bloomberg) — The offshore yuan quickly erased an advance after hitting 6.5 per dollar, suggesting that the level could be a new line in the sand for a currency that’s set to climb for a third quarter.

The yuan traded in the overseas market erased a gain of as much as 0.2% within 30 minutes, after the currency hit 6.5 in Thursday morning trade. The swings followed a similar pattern seen last week, when the offshore yuan briefly breached 6.5 — touching the strongest level in more than two years — and then started to depreciate.

The offshore currency has advanced 4.2% since the end of September, on pace for the longest run of quarterly gains since early 2018, due to China’s economic recovery from the pandemic and its yield advantage over the rest of the world. While the appreciation opens a window for Beijing to carry out financial reforms, it risks hurting exporters and stoking speculative capital inflows.

In October, policy makers sought to slow the rally by allowing more outflows and lowering the cost of shorting, but the measures barely made a dent on investors’ confidence in the yuan.

©2020 Bloomberg L.P.


Legal: This website is operated by TRBHInternational Limited
Trading Rebate Broker is the TRBHInternational Limited , Room 2204,299QRC, 287-299 Queen’s Rond,Central
TRBHInternational Limited was incorporated on 05-JUN-2020 as a Private company limited by shares registered in Hong Kong. It’s company registration number is: 2949329.

Hong Kong Companies Directory – About TRBHInternational Limited’s information may come from different sources and aggregate fill. All information published on our website are for reference only. If you want to update any information on this page, please use your company’s official email account to contact us. When you give us your information, you do not need to spend any cost. Our goal is to help every business growth. This information may have been updated since the last change,please visit the official website of hong kong companies registry to check the latest results.

Risk Warning: Forex and CFD trading involves a significant risk to your invested capital. Please read and ensure you fully understand our Risk Disclosure.