RMB spot rate appreciated by 0.2% in the past week, largest single week increase in a year. Several factors moved the fx rate up: 1) 2Q macro data (GDP growth, HSBC PMI etc) all showed the economy was stablizing which eliminated concerns for hard-landing; 2) expectations that government will keep releasing mini-stimulus to meet the growth goal; 3) returning appetite for China. 28 more words
Tags » RMB
From Benn Steil & Dinah Walker:
106 more words
As for bond prices, China’s central bank holds the key.After more than three years of steady appreciation, the RMB has declined over 3% this year – erasing the past year’s rise.