Fed Member Says China’s Currency Move Appropriate

An adjustment to China’s currency is probably appropriate if that economy is weaker than Chinese authorities expected, an influential U.S. Federal Reserve policymaker said on Wednesday.

In the U.S. central bank’s first public response to China’s decision on Tuesday to devalue its yuan, New York Fed President William Dudley said: “Obviously if the Chinese economy is weaker than maybe what the Chinese authorities anticipated, it’s probably not inappropriate for the currency to adjust in consequence to that weakness.”

“It’s very early days to judge what’s happening in China in terms of the changes in their currency policy,” he said after a speech in Rochester, New York. “Clearly what was happening is the Chinese yuan was appreciating along with the U.S. dollar.”

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza