Yuan rebounds from 14-year low after PBOC verbal warning

Shanghai (Reuters) – RMB Thursday from -Warning at the Central Bank​​ After speculative trading and heavy one-way bets, the greenback hit a low for the year in the previous session, ending an eight-day losing streak for the currency. The People’s Bank of China (PBOC) said on Wednesday that stabilizing the foreign exchange market is a top priority, and reiterated that the yuan has a solid foundation and is basically stable. statement “illustrates the People’s Bank of China’s further concerns about rapid currency devaluation … (although) China The People’s Bank of China will not defend a specific exchange rate level, especially given that the dollar’s depreciation is driven by continued broad dollar appreciation,” Goldman Sachs (NYSE:

GS

) said in the comments. Before the market opens, the central bank sets the central parity at 7. 262 per dollar, 5 points higher than the previously fixed 7 points. 112. Spot market, onshore RMB 7:00 open 262 per dollar and changes hands at 7. 400 At noon, 23 dots or 0.% stronger than the last post session. RMB fell to a low of 7. 0402 Wednesday against the US dollar hit

the lowest level since the global financial crisis .

its2008 Offshore RMB also rebounded to 7 from an all-time low hit a day earlier. 23 per dollar until noon. Currency Trader at means retreat US Dollar Index , along with a verbal warning from the People’s Bank of China, helped boost the yuan’s morning trade. A trader at a foreign bank said the rare strong verbal warning made many investors reluctant to test the yuan’s new lows. Separately, the state-owned Securities Times said in a front-page commentary on Thursday that the yuan was unlikely to continue its rapid depreciation. Market participants typically see such official remarks and state media commentary as a sign that authorities are increasingly uncomfortable with rapid exchange rate movements.

But some analysts said the yuan could still be under pressure as long as the Fed continues to aggressively raise interest rates to curb high inflation. ” We expect to face upward pressure USD/RMB

Insist on Fed rate hikes in aggressiveness,” analysts “Although the People’s Bank of China will continue to accelerate the appreciation of the US dollar against the RMB pace, but we expect the pair to face upward pressure to 7. early

.” RMB market in 100 GMT:

shore Spot goods:

The item is currently last changed PBC Midpoint 7.266 7.400 0.% Spot RMB 7.0402 7.60 0.% Deviation from 1.

%

Midpoint

YTD Spot Change – .% Spot change since

.%

Revaluation

Key Index: the current last change of the item 604 Thomson 0.0

Reuters/HKEX Offshore RMB Index

Dollar Index 14.20 15.192 0.6 *Deviation of USD/CNY exchange rate. A negative number means spot renminbi trading is stronger than the midpoint. The People’s Bank of China (PBOC) allows the exchange rate to move 2% above or below the official central parity rate set each morning.

Offshore Offshore RMB Market

Meter current difference from land Offshore Spot Yuan7.52 -0.%

Offshore 7. 400 0.%

Undeliverable Forward

*Sea Spot Premium Onshore

Figures reflect the difference from the official PBOC midpoint, as non-deliverable forwards are settled based on the midpoint.. 1903