Chinese Yuan skyrocketed against the U.S. dollar on Monday

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Chinese Yaun skyrocketed against the U.S. dollar on Monday

The Chinese Yuan hit a 14-month high of 6.844 against the U.S. dollar on Monday. Even though it lost some gains later, the Yuan traded at 6.8556 at last. Traders are optimistic due to the services’ growth. They don’t seem that worried about a stalled rebound in manufacturing. 

 

Meanwhile, the Japanese yen has had a few turbulent days after Shinzo Abe’s resignation as prime minister for health reasons. The currency steadied on Friday as traders were assured that Japan’s next leader would continue the ‘Abenomics’ economic revival program. On Monday, however, the yen tumbled down by 0.4% to 105.77 per dollar.

 

On the other hand, the New Zealand dollar hit a high of $0.6749. The kiwi retreated slightly by 0.2% afterward, though. The Australian dollar also lowered by 0.2% after reaching a 21-month peak of $0.7381. Despite that, the Aussie remained set to post a fifth straight monthly gain. 

 

How did the Euro and the U.S. dollar fare?

 

The Euro is on track for a 1% monthly gain. It traded steady at $1.1903 on Monday. But as most of London’s traders are off on a banking holiday, the trader’s attention turned to a few Federal Reserve officials. The Fed continues working on the bank’s new policy framework, and it will release the new results this week. 

 

Investors are also waiting for U.S. payrolls on Friday. Meanwhile, the U.S. dollar climbed up by 0.1% to 92.356 against a basket of currencies. Despite that, the currency is still lower by 1.2% for the month.

 

Federal Reserve Chair Jerome Powell spoke about an accommodative policy change last Thursday. Traders believe that this change could result in inflation moving slightly higher, with interest rates staying lower for a longer period.

 

According to Commerzbank analysts, it is not good for the greenback. They stated that if the dollar’s domestic purchasing power erodes more quickly, it may not maintain its purchasing power on the Forex market in the long run.

 

 

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