Yuan Hits 2016 High Against USD After PBOC’s Zhou Speaks on FX Strategy

February 15, 2016 Share Print 0

The yuan hit a 2016 high on Monday, after the People’s Bank of China (PBOC) set its official midpoint rate sharply stronger against the dollar and the central bank governor talked up the currency.

The PBOC set the yuan at 6.5118 per dollar prior to the market open on Monday, up from 6.5314 on February 5, the final fix before the week-long Lunar New Year holiday.

The central bank sets a daily midpoint, or reference rate, and allows the yuan to trade 2 percent above or below this point, as the country makes the transition to a market-based currency valuation.

At 0.3 percent higher, Monday’s midpoint fix versus the previous fix was the biggest change since Nov. 2. when the PBOC put the midpoint 0.5 percent higher.

CNBC

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Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.