USD/CNY Reverses Losses After $1 Trillion Infrastructure Projects Apprvoed

The yuan advanced, halting a two-day drop, as China is said to be speeding up work on 7 trillion yuan ($1.1 trillion) of infrastructure projects as it tries to bolster an economy estimated to expand the least since 1990.

Premier Li Keqiang’s government approved 300 projects as part of a wider 400-venture, 10 trillion yuan plan to run from late 2014 through 2016, said people familiar with the matter who asked not to be identified as the decision isn’t public. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, fell 0.2 percent, after rising 1.1 percent in the past two trading days. The gauge reached the highest level yesterday since its inception in December 2004.

The yuan advanced 0.11 percent to 6.2130 a dollar in Shanghai, China Foreign Exchange Trade System prices show. The currency weakened 0.26 percent yesterday and 0.03 percent on Dec. 31 before markets shut till this week.

via Bloomberg

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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