Posted On: December 26, 2014
The yuan fell 0.25 percent Friday to 6.2129 in Shanghai, according to China Foreign Exchange Trade System prices, Bloomberg reported. The currency rose 0.3 percent Thursday, which marked its largest increase since May 6. Over the course of 2014, the yuan has fallen 2.6 percent against the U.S. dollar, which will be its first annual decline since 2009.
During the same trading session, The People's Bank of China increased the currency's reference rate by 0.04 percent to 6.1186 per dollar. Meanwhile, in Hong Kong, the offshore yuan fell 0.11 percent to 6.2140 per dollar.
"People overall still feel that importers are under-hedged," Ju Wang, a senior currency strategist with HSBC Holdings Plc in Hong Kong, told Bloomberg. "The yuan's gain yesterday provided an opportunity for some of these importers to buy dollars."
The Economic Times reported that the bank will initiate swaps and forwards between the yuan and the Russian, Malaysian and New Zealand currencies. The trading swaps will have a minimum trading level of $10,000, according to a statement by the foreign exchange trade system.
The publication noted the yuan is not currently convertible under the capital account. However, China has continued to adjust currency variables so that the yuan can become fully convertible in the global market.
Category: Industry News
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