Yuan heads for seventh straight quarterly gain
In short
China’s yuan strengthened against the dollar and was on course for its seventh straight quarterly gain. The currency has risen 4.3% this year. Exporter dollar selling, stronger factory activity and a weaker US dollar helped support it.
This matters because a stronger yuan can affect exporters, import costs and investor mood. The report also says Beijing’s support steps for infrastructure, technology and housing helped sentiment, but it does not say how long the gain will last.
What the reporting says
China’s yuan strengthened against the dollar and was heading for its seventh straight quarterly gain, supported by exporter dollar selling, stronger factory activity and a weaker US currency. The report said the yuan has gained 4.3% this year. Beijing’s latest measures to support infrastructure, technology and housing also improved sentiment, but the reporting does not say how far the move may continue or whether it will hold.
Why it matters
China’s yuan strengthened against the dollar on Wednesday and was heading for a seventh straight quarterly gain, with the report citing exporter dollar selling, stronger factory activity and a weaker US dollar. The yuan has gained 4.3% this year. Beijing’s measures to support infrastructure, technology and housing also lifted sentiment. The immediate effect is a firmer currency backdrop for traders and exporters, but the durability of the move is not stated.