The Chinese Central Bank is turning the Yuan fall against the dollar

The Chinese central bank intervened to stabilize the yuan exchange rate through its daily reference price, after dropping to the lowest level in two months due to the rise of the US dollar. The Chinese People’s Bank determined the reference of the yuan exchange rate today at about 7.15 against the dollar, which was a major deviation from the estimates of analysts, and this is the largest since the end of April. This step represents a support indication of the currency that dropped after the US dollar reached its strongest level in two months. The rise in the US dollar. The central bank again confirms its support for the currency with the acceleration of the US dollar’s rise, powered by trade agreements in the interests of the United States, with signals of the US Federal Reserve, saying it will wait to lower interest rates. The Chinese People’s Bank has largely refrained from supporting the yuan in May and June, when the currency moves in an upward direction. When does China start to reduce the value of the yuan? The answer here, Australia and New Zealand banking group: “This installation will help reduce the weakness of the yuan today. The authorities do not want excessive fluctuations in the currency price, and they choose to install it at about 7.15, despite the strength of the dollar’s rise.” The yuan in the external market today rose 0.2% to 7,1993 against the dollar, after dropping to 7,2146 yesterday, and it is the weakest level since the beginning of June. Al -Yuan, along with the Singapore -Dollar, maintained its cohesion today, while other Asian currencies fell under the weight of the US dollar’s profits last night. The monetary authorities also intervened in Indonesia and Hong Kong today to defend their work. For the Chinese People’s Bank, the Chinese People’s Bank remains in the light of any sharp decline in high priority, especially in light of the ongoing negotiations on a trade agreement with the United States of America. Earlier this month, the bank official said that China did not seek a competitive advantage by reducing the value of his currency. The recent recovery of the US dollar – which has already forced hedge funds to abandon its interest of decline – is a test of the confidence of speculators who have the rise of the yuan. The prominent Wall Street institutions, including Morgan Stanley and UBS Global Wealth Management and ‘Deutsche Bank’, expected in her research note this month that the Yuan would reach the level of 7.1 or lower. Read more America and China can agree on strengthening the yuan to reduce the trade conflict. Fear of US customs duties has raised the power of the US dollar, and other currencies such as the Euro and Indian Rupee negatively affect, before the Bloomberg index to measure the performance of the US dollar yesterday, after US federal reserve president Jerome Powell said no decision was made to reduce the following year. Jerome Powell, the militants, Fiona Lim, the main strategic expert of Malaysian Banking, said the markets were surprised by the Powell position, which looked stricter than expected. Also read: The most important conclusions from the statements of the Federal Reserve After keeping the interest unchanged, concluded: “The Chinese bank uses the price of installation to achieve the balance in the yuan exchange rate, which is committed to ensuring the stability of the currency, while the broader market forces determine its direction.”