China's yuan slips as investors await Trump — Xi talk details
By Summer Zhen HONG KONG, Sept 24 (Reuters) — China's yuan dipped against the dollar on Thursday, as rising near-term Federal Reserve rate hike expectations drove the greenback higher, while cautious investors awaited the outcome of the Trump-Xi summit in Washington. The US dollar rallied to its highest level in nearly two months overnight as investors' expectations of a near-term rate hike grew, pushing benchmark 10-year Treasury yields to their highest since 2007. Rising US yields and Fed tightening expectations have supported the dollar but heightened pressure on the yuan and other Asian currencies, analysts said. The spot yuan was 0.09% lower at 6.7171 to the dollar as of 0224 GMT, after trading in a range of 6.7141 to 6.7195. Prior to the market opening, the People's Bank of China set the midpoint rate at 6.7489 per dollar, 305 pips weaker than a Reuters estimate. The spot yuan is allowed to trade a maximum of 2% either side of the fixed midpoint each day. US President Donald Trump welcomed Chinese President Xi Jinping to Washington on Wednesday for a three-day visit. Treasury Secretary Scott Bessent told Fox News that Washington and Beijing agreed to extend their trade truc
By Summer Zhen HONG KONG, Sept 24 (Reuters) — China's yuan dipped against the dollar on Thursday, as rising near-term Federal Reserve rate hike expectations drove the greenback higher, while cautious investors awaited the outcome of the Trump-Xi summit in Washington. The US dollar rallied to its highest level in nearly two months overnight as investors' expectations of a near-term rate hike grew, pushing benchmark 10-year Treasury yields to their highest since 2007. Rising US yields and Fed tightening expectations have supported the dollar but heightened pressure on the yuan and other Asian currencies, analysts said. 7195.
7489 per dollar, 305 pips weaker than a Reuters estimate. The spot yuan is allowed to trade a maximum of 2% either side of the fixed midpoint each day. US President Donald Trump welcomed Chinese President Xi Jinping to Washington on Wednesday for a three-day visit. Treasury Secretary Scott Bessent told Fox News that Washington and Beijing agreed to extend their trade truce through January 10.
The two-month extension is shorter than markets expected. With deep differences remaining on trade and technology, market participants maintain low expectations going into the talks, anticipating limited deliverables. 09% in Asian trade. 15.
"The yuan's recent rally to a 3-1/2-year high reflects that markets have already partially priced in the stabilisations of US-China relations," Kaiyuan Securities said in a note. " Separately, China's central bank said on Wednesday that it would inject up to 1 trillion yuan ($149 billion) per day via short-term liquidity tools around the turn of the month as the Golden Week holiday nears. " Levels At 0223 Gmt INSTR CURRE UP/DO % DAY'S DAY'S UMENT NT vs WN(-) CHANG HIGH LOW USD VS. com; 852-3462-7739;)