Chinese Yuan, Taiwan Dollar Dip as USD Firms Ahead of Jackson Hole

Chinese Yuan, Taiwan Dollar Dip as USD Firms Ahead of Jackson Hole
Chinese Yuan, Taiwan Dollar Dip as USD Firms Ahead of Jackson Hole
© Reuters

By Ambar Warrick– The Chinese yuan and Taiwan dollar edged lower on Friday, with broader Asian currencies also retreating as the dollar strengthened ahead of more cues on U.S. monetary policy from the Jackson Hole Symposium.

fell 0.1% to 6.8549, while the shed 0.2%. Concerns over further deterioration of ties between the two countries grew after a U.S. lawmaker on the Senate Commerce and Armed Services committees landed in Taipei on Thursday, .

The move marks the third visit by a U.S. dignitary to the island this month, and is likely to draw ire from Beijing.

Taiwan had earlier this month launched military drills near the island after a visit by U.S. House of Representatives Speaker Nancy Pelosi. The move had briefly rattled financial markets.

On the economic front, traders were also awaiting more stimulus measures from China, after the government cut interest rates and announced more infrastructure spending this week.

This pushed the yuan to a two-year low. China is facing a severe slowdown in growth stemming from COVID lockdowns, a struggling real estate market, and a potential power shortage.

Broader Asian currencies fell as the rose slightly, sticking close to a near 20-year high. The greenback was also buoyed by a batch of strong U.S. economic data, which gives the Federal Reserve more space to aggressively.

were flat on Friday.

Markets are now awaiting Fed Chair Jerome Powell’s address to the in Wyoming, due later today, to gauge just how hawkish the central bank intends to be.

In the Asia-Pacific region, the slumped nearly 0.5%, and was the worst performer among its peers after indicated that the bank’s recent tightening cycle may be at an end.

The Reserve Bank of New Zealand has since late 2021 to curb rising inflation.

The fell 0.2% on Friday after data showed , its largest city, grew at its highest pace in 30 years in August.

Rising inflation, coupled with the Bank of Japan’s reluctance to tighten policy, has severely dented the yen this year.

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance