Schneider Electric Expands Youth Partnership with Enactus to Drive Inclusive Energy Transition in Egypt    China's Jiangsu Zhengyong to build $85m factory in Egypt's Ain Sokhna: SCZONE    Egyptian pound ticks up vs. US dollar at Thursday's close    Egypt condemns Israeli plan to build 3,400 settler homes in West Bank    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Egypt, Namibia explore closer pharmaceutical cooperation    Egypt, China ink $1bn agreement for Sailun tire plant in SCZONE    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's Electricity Minister discusses progress on Greece power link    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    27 Western countries issue joint call for unimpeded aid access to Gaza    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Australia to recognise Palestinian state in September, New Zealand to decide    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Korean Cultural Centre in Cairo launches folk painting workshop    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Chinese trade decline halts dollar, sends yuan to 6-year low
Published in Amwal Al Ghad on 13 - 10 - 2016

A poor batch of Chinese trade numbers halted on Thursday the dollar's broader rally and sent the offshore version of the country's yuan to within sight of lows hit in a dramatic sell-off in January.
In the tightly controlled onshore market, the yuan was fixed at another six-year low of 6.7255 yuan per dollar. Offshore it traded 0.2 percent weaker at 6.7364.
China halted January's run on the currency by selling huge tens of billions of its dollar reserves and pumping up offshore interest rates on the yuan to squeeze out speculators.
But concerns over the real state of the world's second biggest economy and banks and companies' ability to finance huge debts run up over the past decade continue to argue for a sharp devaluation of the currency.
China's exports fell 5.6 percent in yuan terms in September from a year earlier and 10 percent in dollars.
"(This data) is not good for the renminbi but it will also weigh on U.S. treasury yields," said Stephen Gallo, European head of FX strategy at the Bank of Montreal in London.
"Given sluggish USD rates and the fact that the odds of a December interest rate hike are unlikely to climb much above their current levels for the time being, there are probably better levels to be buying dollars at in the very short-term."
The dollar dropped to as low as 103.555 yen at one point, down 1 percent from the day's high of 104.635 yen, which was the greenback's strongest level since late July.
The dollar last stood at 103.94 yen, down 0.2 percent from late U.S. levels on Wednesday.
The next round of central bank policy meetings are at the center of market discussions.
Reuters reported late on Wednesday that the European Central Bank may discuss technical changes to its asset-buying scheme next week but a decision could be deferred until December when the bank will also decide whether to extend the scheme beyond March.
That pushed Bund yields lower, undoing early gains for the euro and prodding it to an 11-week low of $1.1000 in morning trade in London.
September meeting minutes supported growing market expectations that the U.S. Federal Reserve will raise interest rates in December. But analysts say U.S. bond yields and the dollar may be reaching the limits of the recent shift until the U.S. presidential election is out of the way.
"The minutes are consistent with a December hike in our view, which is already nearly 70 percent priced in," analysts from Credit Agricole said in a note to clients.
Against a basket of six major currencies, the dollar last stood at 97.994, having pulled back from a seven-month high of 98.122 set earlier on Thursday.
The U.S. 10-year Treasury yield stood at 1.7428 percent in Asian trade on Thursday, after climbing to a four-month high of 1.801 percent on Wednesday.
Source: Reuters


Clic here to read the story from its source.