Chinese yuan falls further to lowest in over three months
globalreutersNovember 12, 20241 Mins read Trump’s victory was already a net negative for China in fears of tariffs that will come. However, Chinese markets will now have to add more disappointment from Beijing’s stimulus measures to the equation. It’s not just in terms of the announcement but even recent data hasn’t been that encouraging.
Despite easing measures, new yuan loans for October only came in at a measly ¥500 billion as seen here. Credit demand continues to be lacking and the trend has been rather lackluster, which isn’t a good sign for the PBOC.
Putting everything together, it’s sort of a double whammy for the yuan now in the post-election stretch.
In turn, the dollar continues to rampage on and this is another spot that will provide an indirect tailwind for the greenback as it looks to continue the momentum from last week.
This article was written by Justin Low at www.forexlive.com.
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