BEIJING, March 3 (Xinhua) -- The central parity rate of the Chinese currency renminbi, or the yuan, strengthened against the U.S. dollar Tuesday.
The central parity rate strengthened 295 pips to 6.9516 against the U.S. dollar Tuesday, according to the China Foreign Exchange Trade System (CFETS). On Monday, the yuan was 255 pips firmer than Friday's level.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
Wen Bin, a chief researcher with the China Minsheng Bank, said with the novel coronavirus continuing to spread globally, the greenback is under pressure from market expectation on U.S. Federal Reserve's policy easing, which led to the yuan's recent appreciation against the dollar.
He also attributed the firming trend to lower U.S. 10-year Treasury bond yield, as well as the inclusion of the Chinese government bonds into J.P. Morgan's Government Bond Index-Emerging Markets (GBI-EM) indices last week, which boosted overseas investor confidence in the Chinese capital market.
With the epidemic to be taken under control and the Chinese economy to maintain steady growth, Wen expects the yuan-dollar rate to remain at a reasonable and balanced level in the future.
Liu Guoqiang, vice governor of China's central bank, said earlier that the epidemic's impact on the Chinese economy will be short-lived, and China's sound economic fundamentals and abundant forex reserves would support yuan's value.
China's yuan rose slightly against a basket of currencies last month, with the CFETS yuan exchange rate composite index up 0.08 percent as of Feb. 28, compared with the end of January, according to the CFETS.
The central parity rate strengthened 295 pips to 6.9516 against the U.S. dollar Tuesday, according to the China Foreign Exchange Trade System (CFETS). On Monday, the yuan was 255 pips firmer than Friday's level.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
Wen Bin, a chief researcher with the China Minsheng Bank, said with the novel coronavirus continuing to spread globally, the greenback is under pressure from market expectation on U.S. Federal Reserve's policy easing, which led to the yuan's recent appreciation against the dollar.
He also attributed the firming trend to lower U.S. 10-year Treasury bond yield, as well as the inclusion of the Chinese government bonds into J.P. Morgan's Government Bond Index-Emerging Markets (GBI-EM) indices last week, which boosted overseas investor confidence in the Chinese capital market.
With the epidemic to be taken under control and the Chinese economy to maintain steady growth, Wen expects the yuan-dollar rate to remain at a reasonable and balanced level in the future.
Liu Guoqiang, vice governor of China's central bank, said earlier that the epidemic's impact on the Chinese economy will be short-lived, and China's sound economic fundamentals and abundant forex reserves would support yuan's value.
China's yuan rose slightly against a basket of currencies last month, with the CFETS yuan exchange rate composite index up 0.08 percent as of Feb. 28, compared with the end of January, according to the CFETS.
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