Yahoo Finance Yuan Rises; PBOC Vows to Continue with Stimulus
Investing.com - The Chinese yuan rose against the U.S. dollar on Monday in Asia. In a report published late Friday, the People’s Bank of China (PBOC) said they would continue with stimulus while keeping the currency steady.
The USD/CNY pair was down 0.1% to 6.9076 by 11:30 PM ET (03:30 GMT).
In its quarterly monetary policy report, the PBOC said “trade friction and uncertainties in global policy could impact the global economy negatively.” The central bank added that inflation could be driven up if the trade war with the U.S. drags on, damaging household and corporate confidence and causing financial market turbulence.
The AUD/USD pair rose 0.7% to 0.6917 in Monday morning after a surprise election victory for Prime Minister Scott Morrison.
The pair sank to as low as 0.6868 last week amid a rise in the unemployment rate in April and diminishing hopes that the Sino-U.S. trade spat would be ended soon.
The GBP/USD pair edged up 0.1% to 1.2731. Concerns over Brexit is expected to dominate sentiment on sterling.
Last week, the pair fell to the lowest since January after cross-party Brexit talks collapsed and concern grew about the impact Prime Minister Theresa May’s likely resignation would have on Britain’s exit from the EU.
Also in focus was the news that the White House said U.S. President Donald Trump is delaying a decision for as long as six months on whether to impose tariffs on imported cars and parts to allow for more time for trade talks with the EU and Japan.
The USD/JPY pair was up 0.1% to 110.19.
Data showed the country’s first quarter GDP came in at 2.1%, outperformed expectations of a 0.2% contraction. However, traders remained cautious as the expansion was mostly due to imports declining faster than exports, likely reflecting weak domestic demand.
The U.S. dollar index that tracks the greenback against a basket of other currencies was trading near flat at 97.863.
Data on Friday showed U.S. consumer sentiment jumped to a 15-year high in early May on growing confidence over the economy’s outlook, though much of the surge was recorded before the trade war escalation.
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