NYSE trader on fluctuating markets: 'Uncertainty is what we have'

NYSE trader on fluctuating markets: 'Uncertainty is what we have'

NYSE trader on fluctuating markets: 'Uncertainty is what we have'

But if the U.S. Federal Reserve carries on lowering interest rates and widening the gap between U.S. and Chinese interest rates, the yuan may climb back to the stronger side of 7 per dollar, according to Ji Tianhe, China head of foreign exchange and local markets strategy at BNP Paribas in Beijing.

China let the yuan slide past the key 7 per dollar level on Monday for the first time since the global financial crisis, days after the United States threatened to slap a 10% tariffs on $300 billion of Chinese goods.

The yuan was trading at 7.0435 in mid-afternoon, but that was stronger than the previous day's level.

While this was the weakest central bank fixing since April 21, 2008, it was firmer than market expectations and seen as a signal that authorities wanted to stabilise the decline in the currency following this week's sharp falls. If other countries see Chinese or US exporters gaining a currency advantage, they will feel pressure to respond by pushing their currencies lower, too. If other countries see Chinese or USA exporters gaining a currency advantage, they'll feel pressure to respond by pushing their currencies lower, too.

The yuan's moves over the past week are small compared with fluctuations of the euro and other major currencies.

China's central bank said on Tuesday that Washington's currency move would "severely damage worldwide financial order and cause chaos in financial markets", while preventing a global economic recovery.

Jio Fiber launch from September 5 with 100Mbps speeds
Ambani at the Reliance AGM also announced Jio Digital Platform and Solutions, including a partnership with Microsoft . However, there is one functionality which Reliance Jio has put an emphasis on, and it comes with the Jio Set-top Box.

On Wednesday, the central bank lowered the starting point for trading again, setting it at 6.9996 to the dollar, nearly 0.5% below Tuesday's starting level. That would allow the currency to weaken to as much as 7.100 while staying within the 2% trading band.

The moves have jolted financial markets and fueled concerns about a global recession.

Stock market benchmarks in Tokyo and Shanghai closed down 0.3%. The central bank also said the yuan has strengthened 20 percent against the dollar over the past two decades.

The U.S. government has urged its allies not to use Huawei equipment, which it says China could exploit for spying. "They have a brawny tool at their disposal".

The U.S. Treasury last week put the designation on Beijing for the first time since 1994, roiling financial markets and escalating a bitter tit-for-tat tariff war between the world's two largest economies. That opens the way to possible new penalties on top of tariff hikes already imposed on Chinese goods in a fight over Beijing's trade surplus and technology policies. The next round of talks is scheduled for September in Washington. That would add to downward pressure on the exchange rate.

China's currency weakened slightly on Friday to 7.0501 per greenback, following a daily reference rate from the People's Bank of China that was in line with estimates. Citing that the risks of a havoc-scale currency market volatility seemed to be out of sight in a near-term outlook, a senior FX strategist at TD Securities in New York, Mazen Issa said, "Last night fixed over 7 and markets seem to be taking that fairly well, so perhaps some calm is installed in the market at least for the very near term". The reserves declined by a small margin of $15.5 billion in July to just over $3.1 trillion. "Then, if their exports keep on going, capital inflows will come and then the (yuan) should automatically appreciate", he said. "There are signs that this has already encouraged the PBOC to step-up intervention to manage the pace of depreciation".

Recommended News

  • Priyanka Chopra rubbishes talk of 'catfights'

    Priyanka Chopra rubbishes talk of 'catfights'

    We're all here for love. "Don't yell, don't embarrass yourself". "Thank you for your enthusiasm and your question and your voice". At this point, security takes away the mic from Ayesha and Chopra responds, "Whenever you're done ranting".
    Israel Folau: Izzy gone? Folau's Instagram mystery

    Israel Folau: Izzy gone? Folau's Instagram mystery

    Any person heading to Folau's Twitter or Instagram accounts will be met with messages stating the accounts no longer exist.
    White Sox, Yankees to play at ‘Field of Dreams’ in 2020

    White Sox, Yankees to play at ‘Field of Dreams’ in 2020

    But for one night, big leaguers will play baseball at the Iowa farm that was made famous in the beloved film Field of Dreams . Want your voice heard? The White Sox also are eager to take part in the game.
  • North Korea's Kim Personally Oversaw Saturday's Test of 'New Weapon'

    North Korea's Kim Personally Oversaw Saturday's Test of 'New Weapon'

    He also said Kim apologized for the flurry of recent short-range missile tests that has rattled U.S. allies in the region. Pyongyang has test-fired several missiles in recent weeks, including two short-range missiles launched on Saturday.
    TBI releases timeline of Curtis Watson escape & suspected murder

    TBI releases timeline of Curtis Watson escape & suspected murder

    We appreciate your vigilance and your support over the past few days! "We need to get this unsafe individual into custody". A warrant was issued charging him with first-degree murder, especially aggravated burglary and aggravated sexual battery.
    Beasley, Pistons agree to 1-year deal

    Beasley, Pistons agree to 1-year deal

    Free-agent forward Michael Beasley has agreed to a one-year deal with the Pistons, according to The Athletic's Shams Charania . Earlier this week, Beasley was suspended for five games for violating the NBA's anti-drug policy.
  • Nadal pulls out Cincinnati for US Open preparations

    Nadal pulls out Cincinnati for US Open preparations

    But I didn't manage to probably show my best tennis. "It's just trying to help the game to be better". Neither of the pair have played since their Wimbledon final a month ago won by Djokovic.
    Muse Singer Matthew Bellamy Marries Elle Evans

    Muse Singer Matthew Bellamy Marries Elle Evans

    The couple shared the news by sharing a stunning photo from the ceremony on both of their Instagram accounts. Bellamy was then engaged to Kate Hudson in 2011, though they split three years later , in 2014.
    Tennessee Titans 27, Philadelphia Eagles 10: Final score, stats, analysis and more

    Tennessee Titans 27, Philadelphia Eagles 10: Final score, stats, analysis and more

    The Eagles had the ultimate security blanket in Foles, who led them to a Super Bowl victory two seasons ago after Wentz got hurt. Tennessee Titans' wide receiver Cody Hollister posted a solid effort during the Titans' preseason opening game Thursday night.
  • Ex-Cardinals wide receivers coach Darryl Drake dies suddenly

    Ex-Cardinals wide receivers coach Darryl Drake dies suddenly

    The NFL must go on, but Darryl Drake's contributions to Pittsburgh and to the game of football will not be forgotten. Drake is survived by his wife, Sheila, daughters Shanice, Felisha and Marian as well as two grandchildren.
    Premier League 2019-20: Liverpool thrash Norwich 4-1 in opener

    Premier League 2019-20: Liverpool thrash Norwich 4-1 in opener

    The Reds beat the Canaries 4-1 at Anfield, with Mohamed Salah scoring his first goal of the new Premier League season. Alisson's injury appeared to be innocuous enough after slipping from taking a goal kick in the 35th minute.
    Nora Quoirin: Police set up new hotline to locate her

    Nora Quoirin: Police set up new hotline to locate her

    In an appeal on the GoFundMe.com, the family said Nora's disabilities made her especially vulnerable and they fear for her safety. The family also has launched crowdfunding efforts to enable more relatives to travel to Malaysia to join the search.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.