Yuan breaks 10-day losing streak, Latest Business News - The New Paper

Yuan breaks 10-day losing streak

This article is more than 12 months old

SHANGHAI: The yuan snapped a 10-day losing streak yesterday after the Chinese Commerce Ministry said China and the US are discussing the next round of face-to-face trade talks, scheduled for next month.

Onshore spot yuan finished the domestic session at 7.1514 per dollar at 4.30pm Singapore time, 131 pips stronger than the previous late session close of 7.1645.

At the same time, the offshore yuan was trading at 7.1551 per dollar.

Traders said Beijing's latest comments boosted yuan sentiment as they raised hopes for the end of the costly trade war.

The Chinese ministry said hopes for progress hinge on whether Washington can create favourable conditions for the coming talks in the US.

The Trump administration on Wednesday made official its extra 5 per cent tariff on US$300 billion (S$416 billion) in Chinese imports.

China said last week it would impose additional tariffs in retaliation for the impending US actions.

Yesterday's strengthening of the spot yuan rate also followed firmer-than-expected central bank guidance via its daily fixing and state bank support.

Still, the yuan remained on course for its worst month since China unified its official and market exchange rates in 1994. - REUTERS