The Chinese yuan slipped against the US dollar today even though China’s consumer price inflation remained steady at an elevated level. The problem for the currency is the fact that producer prices remained in deflation for the 38th consecutive month.
The National Bureau of Statistics of China reported that the Consumer Price Index grew at the steady rate of 1.4 percent in March from a year ago, at the same pace as in February, while analysts anticipated small slowdown. At the time, the Producer Price Index dropped 4.6 percent. It was a better reading than the analysts’ forecast that predicted the same rate of decline as in preceding month — 4.8 percent, yet it was not a good figure overall.
USD/CNY ticked up from 6.2055 to 6.2085 as of 15:56 GMT today.
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