Yuan eases off 3-week high on Sino-U.S. tensions, corporate dollar demand

Yuan eases off 3-week high on Sino-U.S. tensions, corporate dollar demand

04 Jun 2020 11:18 AM
 

The yuan eased against the dollar on Thursday, pulling back from three-week highs struck the day before, on renewed Sino-U.S. tensions and rising seasonal corporate demand for the greenback.

The sentiment was dampened after the U.S. government barred Chinese passenger carriers from flying to the United States and planned to designate at least four additional state-run Chinese media outlets as foreign embassies.

But losses in the Chinese currency were limited. Onshore yuan opened at 7.1178 per dollar and was changing hands at 7.1260 at midday, 94 pips weaker than the previous late session close. Currently, it is trading at, 7.1240 per dollar.

The onshore spot yuan hit a high of 7.0899 per dollar on Wednesday, the strongest since May 13.

Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 7.1012 per dollar, 62 pips firmer than the previous fix. Thursday's fixing came in largely matching market forecasts for the first time in about a week.