The dollar changes a little, the PBOC fixed its weaker yuan since December
Investing.com – The u.s. dollar was little changed Wednesday morning in asian trade, the business concerns have decreased somewhat. The people’s Bank of China (PBOC) now stands at the mid-point of the lowest of the yuan since December 25, 2017, a movement considered to be the way for China to absorb the shock of the pressure of trade with the United States.
The dollar index, which monitors the greenback’s strength against six major currencies was at 94.30 on Wednesday at 23h54 AND (03: 54GMT), down 0.01%. On Monday, the index fell to 93,94, due to concerns over the escalation of trade tensions between the United States and its trading partners, but a slight easing of concerns has slightly revived the appetite for risk.
The us president, Donald Trump has suggested at a meeting with lawmakers that the administration could proceed to the reviews of foreign investments under the committee on foreign investment in the United States instead to impose new limits on chinese investment in american technology.
The PBOC set the reference rate for the yuan to 6.5569 – the lowest since last December – compared to 6.5180 Tuesday.
The yuan continued to lose ground against the dollar. The pair USD / CNY was trading at 6.5954, up 0.24%. Last Sunday, the chinese central bank announced the injection of $ 100 billion in the economy by reducing the reserve requirement ratio (RRR) for banks to help the economy to face the pressures of a trade war with the United States.
The yuan sliding also caused the aussie to the downside. The pair AUD / USD slipped 0.18% and was trading at 0,7379 Wednesday morning.
The australian dollar is widely regarded as a proxy for China. The pair AUD/USD will likely follow the action of the yuan as the commercial battle between the United States and China will develop.
The pair USD / JPY has lost 0,14% and was trading at 109,91. The safe-haven currency is often sought in times of market turmoil and political tensions.