Yuan edges up on trade tailwind but growth, oil curb gains

Yuan edges up on trade tailwind but growth, oil curb gains

16 Sep 2019 11:44 AM
 
The yuan held a firm tone on Monday after a holiday weekend, with markets cheered by signs of progress in U.S.-China trade negotiations though weak economic data at home and turmoil in oil markets curbed gains. Ahead of high level trade talks next month, Beijing exempted duties on U.S. goods and Washington delayed a tariff increase in a rapid exchange of goodwill gestures last week. But that optimism was somewhat dented after data on Monday showed China's August industrial production grew at its slowest in 17 years, flagging concerns over cooling economic growth. Earlier, Chinese Premier Li Keqiang acknowledged it would be "very difficult" to maintain growth at 6% or more amid the global economic slowdown and rise of protectionism. The onshore yuan initially climbed on trade headlines to 7.0650 per dollar, its strongest since Aug. 22. It later trimmed gains to 7.0718 by midday, still up 0.1% on the day. Markets were closed on Friday for the Mid-Autumn Festival. The offshore yuan, which traded on Friday and had already digested the U.S.-China goodwill gestures, slipped 0.23% from the previous close to 7.0638 per dollar.

 

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