Yuan set to end 2020 stronger by 6.5%, state banks buy dollars to slow rise
The yuan was set to post a gain of 6.5% against the dollar for 2020, firming again on the last day of the year despite traders reporting that some state banks bought dollars earlier trade to prevent the Chinese currency from rising too fast.
The onshore spot yuan finished its domestic trading session at 6.5398 per dollar, and barring a calamitous fall in the late night trading the yuan was set to show its first annual gain after two years of falls.
The yuan owes its strength this year to the broadly weaker dollar, the widening yield gap between China and the United States and China’s effective coronavirus containment.
By Reuters Staff
(Correcgts year to 2020 in healdine and lead)
SHANGHAI/BEIJING, Dec 31 (Reuters) - The yuan was set to post a gain of 6.5% against the dollar for 2020, firming again on the last day of the year despite traders reporting that some state banks bought dollars earlier trade to prevent the Chinese currency from rising too fast.
The onshore spot yuan finished its domestic trading session at 6.5398 per dollar, and barring a calamitous fall in the late night trading the yuan was set to show its first annual gain after two years of falls.
The yuan owes its strength this year to the broadly weaker dollar, the widening yield gap between China and the United States and China’s effective coronavirus containment.
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TOKYO (Reuters) - Japan announced a fresh $708 billion economic stimulus package on Tuesday to speed up the recovery from the country’s deep coronavirus-driven slump, while targeting investment in new growth areas such as green and digital innovation.
FILE PHOTO: Japanese Prime Minister Yoshihide Suga speaks during a news conference in Tokyo, Japan December 4, 2020. Hiro Komae/Pool via REUTERS
The new package will include about 40 trillion yen ($384.54 billion) in direct fiscal spending and initiatives targeted at reducing carbon emissions and boosting adoption of digital technology.
Policymakers globally have unleashed a wall of monetary and fiscal stimulus to prevent a deep and prolonged recession as the coronavirus closed international borders and sent millions out of work. In the United States, a $908 billion coronavirus aid plan is currently under debate in Congress.