The USD to CNY exchange rate fell in today’s sessions as the Chinese yuan strengthened. Both currencies gained against their other pairs in Monday’s trading.
However, when paired together, the greenback didn’t stand a chance against the yuan as the USD to CNY edged lower. Ideally, traders would expect the yuan to lose after the upsetting Chinese imports and exports data.
China’s import and export data last month came out short of expectations – exports fell 3.2%, and imports declined by 8.5%. The market blames the trade friction between the US and China for the drop in the recent report.
The USD to CNY exchange rate went down by 0.36%, or 0.0255 points, in sessions. The USD to CNY pair currently trades around ¥7.0613 in sessions.
Despite the greenback’s loss against the Chinese yuan, the US dollar index and futures remained active in sessions.
The US dollar index rose 0.20%, or 0.20 points, in today’s sessions. Meanwhile, the US dollar index futures went up by 0.22%, or 0.217 points, in Monday’s trading.
Suffering Currency and Economy
Beijing’s economy and the Chinese yuan have suffered the most from the trade war with the United States.
The USD to CNY remains in focus as traders calculate every and progress of two giants’ conflict. In the previous week, the USD to CNY trading pair has continued to lose as the Chinese yuan regained its confidence.
Analysts are currently weighing in the result from last week’s meeting, and this Monday’s import and export report results. According to experts, another factor that affects yuan’s rally in sessions is the Chinese trade surplus.
China posted a trade surplus of $39.65 billion, well above the $34.83 billion results from August. The result has been affected by the 15% tariffs on $112 billion Chinese goods.