China’s currency firmed to the strongest level against the dollar since the end of March following the release of trade data that showed exports rebounding to restore the country’s trade surplus.
The onshore exchange rate (CNY) strengthened as much as 0.3 per cent on Thursday morning to Rmb6.8745 per dollar, the firmest level since March 31. The offshore rate (CNH) took a similar trajectory, pushing as much as 0.2 per cent firmer to Rmb6.8684.
The dive in the offshore rate also placed it firmer than the onshore rate after more than two days in which it had trended weaker than its ostensibly more managed onshore counterpart. A weaker offshore rate has typically been viewed as signalling market expectations of further currency weakness.