Wednesday, 14 Jul 2021 11:41 AM MYT
Before the market opened, the People s Bank of China (PBOC) set the midpoint at 6.4806 yuan per dollar, 49 pips weaker than the previous fix of 6.4757. Reuters pic
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SHANGHAI, July 14 ― China s yuan eased against a firmer dollar this morning, with many investors growing cautious after the currency s value against its major trading partners surged to a more than five-year high.
Before the market opened, the People s Bank of China (PBOC) set the midpoint at 6.4806 yuan per dollar, 49 pips weaker than the previous fix of 6.4757. It was the weakest since June 24.
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The yuan has only gained 0.8% against the dollar this year.
Sun Guofeng, head of the monetary policy department at the PBOC, told media on Tuesday that China would maintain normal monetary policy stance and prioritize stability and focus on domestic conditions.
Sun’s remarks came after the PBOC announced on Friday that it would cut the amount of cash that banks must hold as reserves.
But still, some investors took the surprise RRR cut as a signs of dovish tilt and believed that higher liquidity should naturally pile downside pressure on the currency, according to traders.
(Reporting by Winni Zhou and Andrew Galbraith; Editing by Himani Sarkar and Gerry Doyle)
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