China central banker says currency slide under observation

Share
China central banker says currency slide under observation

The Turkish lira, seen as an emerging markets weak link, fell more than 1 per cent after data showed June inflation accelerating to 14-year highs, hit by oil prices and the pass-through from currency weakness.

Chinese currency and equity markets have been on edge ahead of Friday, when United States tariffs on US$34 billion (S$46.5 billion) worth of Chinese goods kick in.

MSCI's gauge of stocks across the globe gained 0.23 percent. Retail stocks were down 3.58 percent, with Fast Retailing lower by 2.87 percent.

The mood was more cheerful in Europe where a pan-European equity index rose 1 percent, the euro firmed and bond yields climbed after German Chancellor Angela Merkel struck a migration deal with her Bavarian conservative coalition partners.

Hong Kong's markets were closed for a holiday. "Now, I think, the realization comes in that downside risk could be more significant", Rainer Michael Preiss, executive director at Taurus Wealth Advisors, told CNBC's "Capital Connection".

The Chinese yuan, on a downward spiral since mid-June, slipped past 6.7 per dollar in early trading on Tuesday for the first time since August 9, 2017 before paring losses on talk of intervention by the Chinese central bank.

Major currencies marked time on Wednesday while the Chinese yuan recovered from 11-month lows, after efforts by authorities the previous day to calm financial markets which had been rattled by worries about trade wars. Traders and economists say major state-owned banks sometimes act on behalf of the central bank in the foreign exchange interbank market.

In a statement posted on the Chinese central bank's website Tuesday, Governor Yi Gang said it's "paying close attention" to recent fluctuations in the market and will seek to keep the yuan stable at a reasonable level.

On equity markets, Hong Kong dived as much as 3.3 per cent at one point to nine-month lows, hit also by a U.S. move to block China Mobile from offering services to the United States market. He also said that the yuan wouldn't be used as a weapon in a trade war with the U.S.

Also on Monday, Washington moved to block China Mobile from offering services to the US telecommunications market, recommending its application be rejected because the government-owned firm posed national security risks.

The pair last traded at C$1.3115, its highest level in 2-1/2 weeks. Japan's Nikkei edged to a near three-month closing low.

Focus was on whether the RBA makes a mention of the recent U.S. -China trade tariffs, traders were more concerned about jettisoning risk which could have contributed to the amplified price action.

Stock markets in Europe and the United States advanced on Thursday, offsetting more losses in Asia as investors were encouraged by economic data from Germany and a report that its big carmakers could be spared from US tariffs.

The Aussie was steady at $0.7338 after dropping to $0.7311 overnight, its lowest since January 2017.

Share

Advertisement

Related Posts

Lewis will travel to Russian Federation if England make World Cup final
Mercedes driver Valtteri Bottas started from pole position ahead of his team mate Lewis Hamilton . If you look at Ferrari, they've lost points, I'm pretty sure the Red Bulls have lost points.

Former Winners Petra Kvitova And Maria Sharapova Knocked Out In First Round
Spain's Garbine Muguruza opened her Wimbledon title defence with a 6-2, 7-5 win over British wild card Naomi Broady on Tuesday. Maria Sharapova has bowed out in the first round at Wimbledon after losing to Vitalia Diatchenko of Russian Federation .

Key Trump ally Scott Pruitt forced to resign
As Oklahoma attorney general, Pruitt sued the agency he eventually came to lead for its efforts to regulate pollution. Senate has confirmed Deputy Andrew Wheeler to pick up where Pruitt left off dismantling EPA regs.

Joey Chesnutt Wins 11th Nathan's Title By Eating Record 74 Hot Dogs
Still, she easily beat out second-place finisher Mischelle Lesco of Tuscon, Arizona, who chowed down 28 wieners and buns. A new world hot dog eating champion was crowned yesterday at the annual Nathan's Famous Hot Dog Eating Contest.

Lakers plan to surround LeBron James with tough-minded playmakers
Just ask Bryant, who won two Olympic gold medals as James' teammate while spending his entire 20-year career with the Lakers. LaVar Ball firmly thinks his son will be the flawless sidekick to the newest Los Angeles Laker, LeBron James .

Belgium ready for defining game against Brazil, says Vincent Kompany
Kompany is well aware of the talent in Brazil's squad, but he is also confident that Belgium can overcome the challenge. The signs are positive and of a real desire to be on the football pitch.

Trump Defends Rambo-style Agents To Bloc Alien Entry to US
In recent weeks, more politicians have endorsed a frequent rally change to " Abolish ICE ". "I don't support open borders ". There has to be accountability for all law enforcement , including Immigration and Customs Enforcement .

Indianapolis church 'detains' Jesus, Mary and Joseph
For thousands of families as for Jesus et al, "It is a cage, it's a detention center , its a concentration camp", says the Rev. Stephen Carlsen , rector of the church. "We want border security".

Senate Intel agrees with assessment that Russian Federation meddled to help Trump
The Senate committee, however, said the scope of Russian interference has only become clearer in the years since the campaign. The Senate committee's bipartisan conclusion comes as Trump is scheduled to meet with Putin on July 16 in Helsinki, Finland.

Suspected poachers killed by pride of lions on South African game reserve
The reserve is still open to guests. "They were clearly intent on killing rhinos and cutting off their horns". So far this year, more than nine rhinos have been killed in the Eastern Cape province, according to the BBC .

© 2015 ExpressNewsline. All Rights reserved.