Dollar rises back above 118 yen as China concerns ease following firmer yuan fixing

After days of turmoil in equity markets fuelled by China and growth concerns, markets appeared calmer on Friday.
There was a rebound in stocks in Shanghai and Tokyo markets also gained amid a sense of relief about Chinese economic conditions after the People’s Bank of China fixed the yuan higher against the US dollar.

China’s central Bank (PBOC) helped soothe markets by setting a stronger yuan midpoint rate against the dollar. The rate was set at 6.5636 per USD prior to the market open, firmer than both the previous fix and Thursday’s closing quote.

Meanwhile, the suspension of the circuit breaker and the stopping of the devaluation of the Yuan helped return some confidence in the markets. China announced late on Thursday it suspended its new stock market circuit breaker introduced only on Monday as the system failed to reduce market volatility, with some market players even saying it backfired.

The CSI300 index of major Shanghai and Shenzhen stocks was up 2.7 percent and the Shanghai Composite climbed 2.4 percent.

Shares in Asia were still on track for their biggest weekly fall in more than four months, but Friday’s advances seemed to reduce some of the fears that have hit global markets.

Higher Chinese stocks also supported MSCI’s broadest index of Asia-Pacific shares outside Japan, which erased earlier losses to be up 0.6 percent. That put it on track for a loss this week of about 6 percent, which would be its biggest fall since August.

The U.S. dollar rose back to the 118 yen level Friday morning in Tokyo following its recent selloff as risk aversion helped lift safe havens like the yen.

The post Dollar rises back above 118 yen as China concerns ease following firmer yuan fixing appeared first on FXTM Blog.

Source:: Dollar rises back above 118 yen as China concerns ease following firmer yuan fixing

About the Author
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC. Our mission is to maximize the value our clients derive from their most precious commodity, "Time"! By offering advanced and innovative services, optimal customer care and perpetual devotion to our clients, we will ensure that their individual needs are always met as markets continue to evolve over time. Visit ForexTime to learn more www.forextime.com [space height="20"] [social type="facebook"]https://www.facebook.com/ForexTime[/social] [social type="twitter"]https://twitter.com/ItsForexTime[/social] [social type="google-plus"]https://plus.google.com/u/0/+ForextimeFXTM/posts[/social] [social type="youtube"]https://www.youtube.com/user/ItsForexTime[/social]

Related Posts

Leave a Reply

*