Forex – Yuan Steady After Trump Remarks, Central Bank Liquidity, U.S. Dollar Rises


© Reuters.

Investing.com – The Chinese lost its initial impetus and traded little changed against the U.S. dollar on Tuesday as China’s central bank supplied liquidity, dampening a rebound from 2019 lows.

The yuan has been under pressure as escalating tariffs between Washington and Beijing heightened fears of economic damage to the world’s second-largest economy.

Remarks from U.S. President Donald Trump that he would meet with his Chinese counterpart Xi Jinping at the G20 meeting on June 28 and 29 and that he believed trade talks would be “very successful” breathed new life into the yuan, allowing a recovery from this year’s low.

But China’s central bank stepped in on Tuesday with an injection of 200 billion yuan (approximately $29 billion), pulling back up to the unchanged mark, its highest level since the end of December.

Trump noted the move in a tweet, saying that “China will be pumping money into their system and probably reducing interest rates”, while urging the Federal Reserve to do the same.

Investors paid little attention the American president’s call for lower rates and the remained higher as they rotated out of safe-haven currencies such as the Japanese yen or Swiss franc. and were both around 0.3% higher by 11:00 AM (15:00 GMT).

The greenback also received a lift from weakness in and the after disappointing economic data. U.K. cooled more than expected in March while German registered an unexpected decline, placing pressure on the single currency.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments