Yuan continues to weaken vs. USD

The Chinese renminbi was weaker against the dollar. On-shore Chinese yuan traded at 6.89, falling from levels below 6.80 before the U.S. election results, while the off-shore yuan traded at 6.90.

“A toxic combination of steeper U.S. yield curve, along with the ever-present discussion of a trade war with the U.S., dominates the current currency landscape, which favors a weaker yuan,” said Stephen Innes, a senior trader at OANDA.

Innes added worries over asset bubbles in the mainland and uncertainty over China’s growth trajectory will exacerbate the weakness in the currency.


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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes