Stronger yen? Softer dollar? The renminbi cares not for such trifling developments.
China’s onshore currency exchange rate – known as CNY, accounting for the vast majority of FX activity – looks set to end the week basically where it started, trading at Rmb6.6465 against the dollar, or 0.13 per cent weaker than its level at Monday’s open.
The same goes for the offshore rate, CNH. That’s up 0.1 per cent for the week so far, trading at CNH6.6530 against the dollar.
That’s despite recent strengthening in the central bank’s daily fix for the currency’s trading band against the dollar. While many analysts have forecast continued weakening against the dollar before the year’s end, the People’s Bank of China appears to be reining in a longer-term weakening trend, at least in the month to date.
But expect FX markets’ attention to swing back around to “the people’s currency” once the next G20 summit – set to be held in Hangzhou, capital of the booming Chinese province of Zhejiang – is over. That’s scheduled for 4-5 September.
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