The USD to CNY exchange rate failed to gain some altitude in yesterday’s trading after news about the Yuan’s reserve. Yesterday, China’s foreign exchange reserve dropped way past experts’ expectations. The news strengthened the yuan in sessions.
Despite the boost from the news, the yuan still failed to take down the US dollar in sessions. The USD to CNY remained at ¥7.1484 in trading.
USD to CNY traders saw little action yesterday as the pair also did not go beyond or below the ¥7.1484 mark.
Meanwhile, the Chinese yuan / Chinese yuan offshore rallied 0.32%, or 0.0032 points, in yesterday’s trading.
China’s foreign exchange reserve declined in September after seeing three consecutive months of gains. According to China’s regulators, the cause was the valuation effects.
The foreign exchange reserve fell by $14.75 billion last month, way beyond analysts’ expectation of $12 billion. Another reason for the drop is the fall in bond prices in other big economies.
China’s foreign exchange reserve came in at $3.0924 in September, according to the official report released on Sunday.
Despite the USD to CNY pair stagnant run yesterday, the yuan still gained against other currencies such as the AUD and NZD.
The AUD to CNY trading pair fell by 0.49%, or 0.0239 points, yesterday. The pair extended its losses from ¥4.8366 to as low as ¥4.8126 in Monday’s sessions.
Meanwhile, the NZD to CNY exchange rate fell by 0.37%, or 0.0168 points, during the trading session. The pair reached ranges between ¥4.4948 and ¥4.5195 yesterday.
Despite the drop in China’s foreign exchange reserve and the complex global situation, the Chinese economy has maintained its stability.
The scale of China’s foreign exchange reserve also remains generally stable according to experts. One analyst said that the minimal fluctuations in the scale are only due to the valuation factors.