China’s national currency has escaped the tight grip of the authorities and asserted strength against the US dollar. The Communist party is certainly displeased about such a dynamic of the renminbi.
China’s authorities are not interested in the firm yuan. So, the People’s Bank of China is alert to the yuan’s forex rate, making every effort to hold it at lows. Recently, something went wrong and China’s central bank allowed the renminbi to grow by 171 basis points to 6.4254 against the US dollar. The regulator posts daily midpoint rates for the onshore yuan before Chinese markets open. Advancing for a few trading sessions, the yuan strengthened to the largest degree against the greenback since June 19, 2018.
Experts say that the renminbi is taking advantage of the weaker US dollar. While analysts are still uncertain about the global economic recovery, China’s economy is gaining traction at full steam. Forex analysts expect the onshore yuan to trade in the corridor of 6.45 to 6.60 against the US dollar.
