Back
28 Feb 2014
Flash: Weaker Yuan suggests a PBoC easing bias - Danske Bank
FXStreet (Barcelona) - Pernille Bomholdt Nielsen, Analyst at Danske Bank notes that in Asia CNY has weakened 0.6% against USD to 6.164.
Key Quotes
“Importantly, the People’s Bank of China again kept the reference exchange rate for USD/CNY used to fix the daily trading band largely unchanged at 6.12.”
“Hence, the trading band has so far not been moved higher and in our view PBoC is not targeting a major depreciation of CNY by signalling that we should be prepared to more two-way volatility in the exchange rate. Weaker yuan suggests PBoC easing bias and widening of trading band.”
Key Quotes
“Importantly, the People’s Bank of China again kept the reference exchange rate for USD/CNY used to fix the daily trading band largely unchanged at 6.12.”
“Hence, the trading band has so far not been moved higher and in our view PBoC is not targeting a major depreciation of CNY by signalling that we should be prepared to more two-way volatility in the exchange rate. Weaker yuan suggests PBoC easing bias and widening of trading band.”