Yuan is ready to fix the decline for the seventh week in a row
The yuan fell during the Asian session and the Chinese currency is ready to fix the seventh consecutive week decline, which was the longest series since 2015. Meanwhile, the us dollar also traded in the red.
USD/JPY pair increased 0.14% to 6,8030. Since the beginning of June, the yuan fell by almost 6%, as traders are concerned that the authorities prefer to refrain from interventions and will not stop the fall of the currency until there are signs of speculative short positions.
Some analysts believe that the Chinese authorities may follow a policy of weakening the currency in order to compensate for the impact of the trade war with the United States.
Goldman Sachs group experts believe that the yuan recession compensates for the sharp slowdown in China’s economy after the introduction of the first two tariff packages.
“Investors understand that the people’s Bank of China has no plans to intervene and is accustomed to high bilateral volatility,” said Ken Chung, senior currency strategist at the Asian market at Mizuho Bank Ltd.