{"id":126178,"date":"2025-09-07T08:37:06","date_gmt":"2025-09-07T08:37:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/126178\/"},"modified":"2025-09-07T08:37:06","modified_gmt":"2025-09-07T08:37:06","slug":"chinas-yuan-rallies-with-central-bank-backing-as-worries-mount-over-us-dollar","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/126178\/","title":{"rendered":"China\u2019s yuan rallies with central bank backing as worries mount over US dollar"},"content":{"rendered":"

A recent rally in China\u2019s yuan has been primarily fuelled by stronger guidance from its central bank rather than by market forces, analysts said, pointing to a mostly steady US dollar index.<\/p>\n

However, they noted, this period of strengthening is likely to remain measured, as Beijing prefers to avoid harming the competitiveness of its exporters amid trade tensions with the United States.<\/p>\n

Over just five trading days last week, the People\u2019s Bank of China pushed the yuan\u2019s reference rate<\/a> against the US dollar from 7.1321 to 7.1030 \u2013 a pace that He Wei, an economist with Beijing-based research firm Gavekal Dragonomics, said matched the total change observed over the previous two months.<\/p>\n

In contrast, the US dollar index showed no significant weakening \u2013 mostly fluctuating between 97.8 and 98.6 \u2013 even after Federal Reserve Chair Jerome Powell opened the door to a September interest rate cut during a speech late last month.<\/p>\n

In a note on Wednesday, He of Gavekal said China\u2019s central bank had \u201cdecided to push up the renminbi, even though currency markets were not moving in that direction.\u201d<\/p>\n

The move could have been made proactively to prepare for a potential weakening of the US dollar, He said, as the likelihood of a rate cut increases and concerns over the Federal Reserve\u2019s independence<\/a> mount under US President Donald Trump.<\/p>\n","protected":false},"excerpt":{"rendered":"A recent rally in China\u2019s yuan has been primarily fuelled by stronger guidance from its central bank rather…\n","protected":false},"author":2,"featured_media":126179,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[8580,4536,45,49,48,95,88,69455,1376,46,2071,39976,1375,24917,69456,7893,45688,69457,69458],"class_list":["post-126178","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-beijing","tag-bloomberg","tag-business","tag-ca","tag-canada","tag-china","tag-commerce-department","tag-crescat-capital","tag-donald-trump","tag-economy","tag-federal-reserve","tag-gavekal-dragonomics","tag-jerome-powell","tag-li-chenggang","tag-pboc","tag-us-dollar","tag-us-treasury","tag-us-china-trade-deal","tag-yuan"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/126178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=126178"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/126178\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/126179"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=126178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=126178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=126178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}