Yuan nudges higher

SHANGHAI, Dec 11 (Reuters) – China’s yuan edged up against the dollar on Monday, reflecting a firmer midpoint in cautious trading as investors looked to the Federal Reserve policy meeting clues on the pace of U.S. monetary tightening next year. The Fed is widely expected to raise interest rates at the end of a two-day policy meeting on Wednesday, and is seen as likely to hike a further two to three times in 2018. Prior to market opening on Monday, the People’s Bank of China set the midpoint rate at 6.6152 per dollar, snapping 10 straight days of weaker settings, 66 pips or 0.1 percent firmer than Friday’s fix of 6.6218. In the spot market, the onshore yuan opened at 6.6190 per dollar and was changing hands at 6.6160 at midday, 80 pips firmer than the previous late session close. Traders said the yuan was hemmed in a tight range on Monday morning, with the spot rate swinging around the official midpoint. “The yuan remains handcuffed by domestic economic uncertainty but as we enter the year-end stretch run a resurgent USD is likely to present some headwinds to the RMB complex as well,” Stephen Innes, head of trading for Asia-Pacific at OANDA, wrote in a note to clients.

The Daily Mail Via Reuters

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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
Stephen Innes

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