The Chinese yuan continues to weaken in today’s trading after the People’s Bank of China announced their new benchmark.
The yuan remains on edge against the US dollar in Wednesday’s session. The CNYUSD trading pair gained 0.16%, or 0.0002 points.
The pair currently trades around $0.1417 against its last close of $0.1415 and has reached levels between $0.1416 and $0.1418.
As traders worry about which central bank will take make the next interest rate cut, the PBOC decided to go the other way. Over the weekend, China’s central bank made an unexpected step towards monetary policy reforms.
According to Chinese state-owned media, the bank reduced its lending power from 4.35% to 4.25%, 10bps lower on Wednesday.
Liu Guoqiang, PBOC Vice Governor, told reporters that Chinese policymakers do not want another or additional drops in mortgage. The PBOC promised stability for the yuan. However, the move dictated otherwise.
Aside from that, the PBOC official added that there could be more declines in the Reserve Requirement Ratios (RRR) and interest rates.
More Forex Pairs
Aside from its lost against the US dollar, the yuan also fell against the Australian dollar, New Zealand dollar, and yen.
The CNY to AUD pair slightly inched up by 0.06%, or 0.001 points, in today’s session. The pair currently trades around AU$0.2090.
The CNYAUD pair closed in yesterday’s sessions at AU$0.2089 but has now climbed to ranges between AU$0.2087 and AU$0.2092.
The CNYNZD trading pair rose 0.21%, or 0.0005 points, exchanging for NZ$0.2214 in sessions. The pair hit levels from NZ$0.2206 to NZ$0.2215.
And the CNY to JPY also gained 0.33%, or 0.0490 points, and is presently trading at ¥15.0918. The pair has reached ranges of ¥15.0451 to ¥15.1071 in today’s trading.
However, the yuan had the upper hand against the struggling currencies of Europe, the euro and pound sterling.
The CNY to EUR declined 0.14%, or 0.0002 points, it is currently trading at €0.1277. And the CNYGBP pair went down 0.38%, or 0.0004 points, exchanging around £0.1167.