Yuan hits highest since July on progress in talks

Economy | Politics | Markets 1/10/2019, 7:43 AM
Yuan hits highest since July on progress in talks

China's currency surged on Thursday after more details were leaked from the trade negotiations with the United States. The yuan continued with appreciation for the second day, reaching 6.7842 per dollar, the strongest point since July 26, as participants opened the way for discussions at a higher level. The most populous nation reportedly agreed to buy more US merchandise and services and to open its market further for investment, but the two sides are said to have left many issues unresolved.

US negotiators asserted the existing arrangements warrant "ongoing verification and effective enforcement" and cited the "persistent trade deficit" and "structural issues." China's account was positive if vague. Of note, factory gate inflation slowed to 0.9%, a 28-month low, and consumer price growth eased to 1.9%, a half-year low.

China's central bank strengthened the mid-point exchange rate to 6.816 from yesterday's 6.8526. The dollar fell 0.44% to 6.7882 yuan and 0.3% to 6.79236 offshore yuan at 7:41 am CET. It touched 6.78483 offshore yuan, the weakest level since August 27. The euro declined 0.34% to 7.8453 yuan and 0.23% to 7.8481 offshore yuan.

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