Yuan set for longest run since 2015 on GDP
THE onshore yuan rose for the sixth day in a row, the longest run of gains since 2015, boosted by a stronger central bank fixing and data showing China’s economy held up in the second quarter.
The yuan gained 0.05% to 6.7704 per dollar as of 5:14 p.m. in Shanghai, extending its six-day advance to 0.5%, after the People’s Bank of China set its daily fixing at the strongest level since November.
The offshore rate dropped 0.05% to 6.7696.
The nation’s gross domestic product (GDP) increased 6.9% in the three months through June, beating a Bloomberg survey’s median forecast of 6.8% growth. June industrial output, fixed-asset investment and retail sales all surpassed estimates as well.
“The sentiment on the yuan is relatively good as the policy makers appear to favor a stable currency that fluctuates in a narrow range,” said Tommy Xie, economist at Oversea-Chinese Banking Corp. “The yuan will be driven by the dollar throughout the rest of 2017, and there are no major domestic reasons for the currency to depreciate. It will end the year around 6.8 to 6.9 per dollar.”
The onshore yuan rose 0.5% last week, rising to the strongest closing level in eight months. -- Bloomberg