What is this, like the biggest move this year? I just got in… is something going on?
Fascinating. So the central bank may well have to step in and support the yuan…that should be bearish for the dollar?
I wonder if this could be a major shift point if the PBC, because over the long term, they need to keep raising the yuan.
the Yuan won’t increase in value vs. USD…a higher CNY depresses exports which is x% (very big) part of China’s economic engine…plus, China is going to conduct some very inflationary policies to reduce the value of their debt…inflation is much more likelly than deflation there so I wouldn’t speculate on the movement in the politically driven YUAN
I guess its an anti inflation move?
0.62% is not a big move - other currencies move more than this all the time. It’s just not normal for CNY. Most of the time the government controls the currency very strictly, so in a normal day, it moves like 0.1%. Today is a bit weird. Must be something to do with stimulus policy.