Yuan hovers at key 7/dollar mark ahead of Q2 economic data

Yuan hovers at key 7/dollar mark ahead of Q2 economic data

13 Jul 2020 11:15 AM
 

The yuan hovered around the key 7 per dollar threshold on Monday, ahead of economic data this week that will shed light on the economic recovery in China from the virus pandemic, while gains in the equity market continued to support sentiment.

Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.9965 per dollar, snapping four straight days of advances, and was 22 pips, or 0.03%, weaker than the previous fix of 6.9943.

In the spot market, onshore yuan opened at 6.9998 per dollar and was changing hands at 6.9988 at midday, 12 pips firmer than the previous late session close. And it traded in a tight range of about 100 pips on Monday morning, following a 0.96% gain last week, the biggest weekly rise since January 2019.

China is due to release second-quarter economic figures on Thursday, with analysts widely expecting GDP to have rebounded from a record 6.8% contraction in the first quarter.