Dollar well set on cross, yuan to minimum series in offshore trade
Aug 8 2020, 09:34
NEW YORK (Reuters) - At the opening of the session on the US platform, the positive trend continues that keeps the dollar close to the top of the last nine months in terms of the index against the first six weighted counterparts for trade. ** Meanwhile, the marked weakness of the Chinese exchange is highlighted: in the offshore trade opened in 2010, the currency slipped to the minimum of the series up to 6.7882 per dollar. ** The latest comments by Fed representatives have made the assumption of a tightening of rates in December even more concrete, as the upward movement in government yields also says. ** Compared to the end of September, in just over three weeks the yuan has left over 1.5% on the ground against the greenback. However, the fluctuations of the Chinese currency are very limited compared to those followed by the central bank's devaluation in August. ** "The appreciation of the dollar will hardly be the same as in the past," notes exchange analyst BNP Paribas Sam Lynton-Brown. "Since the Chinese yuan is depreciating, which in the Fed basket has a fairly high weighting, it is likely that the central bank will avoid a too hawkish tone that would further boost the dollar," he adds.