The Dollar Bull Run

Traders are allowed to trade up to 2 per cent either side of the reference point for the day.

Stephen Innes, senior trader at OANDA, told the Post he now expected the yuan to trade at 7 to the dollar by the end of the year.

“I’m not going to get excited until it hits 7,” he said.

He said the yuan was falling on the US dollar’s continual rise, although mainland China often had a “psychological issue” with the connection between the currencies, and he didn’t see the US dollar’s momentum abating.

There had been heavy capital outflows due to the low yuan, and Innes warned: “If we don’t temper this exodus in some respect, I think it would be a free-for-all as we get into year-end.”

On Wednesday, the US dollar rose to its highest level since March 2003, pushed up by positive US economic reports that reinforce expectations of interest rate hikes next month.

South China Morning Post

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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