China's yuan gains as Fed rate caution knocks dollar from 18 — month high
SHANGHAI, Oct 15 (Reuters) — China's yuan inched higher against the dollar on Thursday after the US currency slipped from an 18-month peak as Federal Reserve officials cautioned about chances for a hike in interest rates this month, despite hotter-than-expected inflation data. In the spot market, the onshore yuan was 0.09% higher at 6.6918 per dollar by 0307 GMT, while its offshore counterpart fetched 6.6921. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.7253 per dollar, 276 pips weaker than a Reuters' estimate of 6.6977. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day. Based on Thursday's official midpoint guidance fix, the yuan's trade-weighted value against its major trading partners, as measured by the CFETS yuan basket index, rose to a more than four-year high of 103.73, The yuan has gained about 5.9% so far this year versus its major trading partners, compared with a 4.5% rise to the dollar. "We expect gradual yuan appreciation through the rest of 2026 and into 2027, with occasional volatility to discourage speculative inflows," analysts at Pan
SHANGHAI, Oct 15 (Reuters) — China's yuan inched higher against the dollar on Thursday after the US currency slipped from an 18-month peak as Federal Reserve officials cautioned about chances for a hike in interest rates this month, despite hotter-than-expected inflation data. 6921. 6977. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.
5% rise to the dollar. "We expect gradual yuan appreciation through the rest of 2026 and into 2027, with occasional volatility to discourage speculative inflows," analysts at Pantheon Macroeconomics said in a note. " A string of upbeat Chinese economic data, ranging from trade to credit lending, underpinned market sentiment in morning deals, currency traders said on Thursday. But attention will quickly shift to Monday's release of third-quarter gross domestic product (GDP) data, they added.
0% GDP growth target this year," said Michelle Lam, Greater China economist at Societe Generale. 3% in the second half of 2026 would be required. " Levels At 0307 Gmt: INSTRUMENT CURRENT UP/DOWN(-) % CHANGE DAY'S HIGH DAY'S vs USD VS. 6942 yuan spot (Reporting by Shanghai Newsroom; Editing by Clarence Fernandez)