Date
26 September 2017

Central bank sets RMB midpoint weaker at 6.1460

The People’s Bank of China set the renminbi’s daily midpoint against the US dollar at 6.1460 on Thursday, 109 pips weaker than the 6.1351 fixing on Wednesday, according to the China Foreign Exchange Trade System. The magnitude and period of the current renminbi’s depreciation may be larger than expected due to factors such as volatility and slowing economy, Securities Daily quoted an analyst at China Merchants Securities Co. Ltd. (600999.CN) as saying. However, Tao Dong, chief Asia economist at Credit Suisse, said the depreciation will not last too long as capital outflow may become serious once previous expectations of renminbi appreciation fundamentally change, adding that he expects the currency to rise 1 percent against US dollar by year-end, according to the report.

– Contact HKEJ at [email protected]

TL/AC/CG

 

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