Forex Markets: Yuan Rises, Dollar Stable

In the forex markets, the yuan rose versus the U.S. dollar on Thursday.

The People’s Bank of China (PBOC) set the reference rate for the Chinese currency to its weakest level since 2008.

Earlier, the USD/CNY currency pair declined 0.2% to 7.0423.

Meanwhile, the Chinese yuan was not getting a great deal of public attention this week when the closely watched seven-level versus the U.S. dollar overlapped.

In addition, Beijing was accused by the treasury department as a currency manipulator.

A daily reference rate at 7.0039 per dollar was acknowledged by the PBOC on Thursday.

On the other side, this week, the PBOC implemented the key level while fixing the one that was not set previously.

In a news report forecast, the daily fixing today was stronger than they expected it to be.

China’s U.S. dollar-denominated exports unexpectedly increased from a year ago in July as showed on the data front. On the flip side, imports glided less than expected.

In the previous month, forex markets recorded a $45.06 billion country trade surplus, according to customs data.

Update on the Movement of Forex Markets

Digging deeper into the forex markets, the U.S. dollar index was a little moved at 97.368. The greenback plunged overnight before improving slightly.

Allegations regarding the Federal Reserve’s slow cutting of rates was repeated by the U.S President Donald Trump and it has resulted to decline forex markets.

U.S. President Donald Trump tweeted “cut rates bigger and faster.” In addition, he also stated, that “our problem” was not China, but the U.S. central bank.

Following the Reserve Bank of New Zealand’s unexpected decision to cut the benchmark policy rate to an all-time low, the NZD/USD currency pair retreated 0.2% to 0.6457 after tumbling previously.

The AUD/USD currency pair also improved by 0.3% to 0.6774.

The USD/JPY currency pair was little changed at 106.20.

Meanwhile, in the forex markets, the dollar against a basket of currencies (DXY) was broadly firm at 97.58. But it declined by 0.1% versus the Australian dollar and the British pound.