Yuan lower on weak industrial data
HONG KONG: China's yuan slipped from a seven-month high against the dollar on Friday, weighed down by disappointing industrial profit data, but progress in US-China trade negotiations eased some of the pressure.
Data showed China's industrial profits swung back into sharp decline in May from a year earlier, as factory activity slowed in the face of broader economic stress and a fragile trade truce with the United States.
By 0345 GMT, the yuan was 0.04% lower at 7.1702 to the dollar after trading in a range of 7.1692 to 7.1747.
In the previous session, the yuan strengthened to a high of 7.1565 per dollar, the strongest since November 8.
Prior to the market opening, the People's Bank of China set the midpoint rate at 7.1627 per dollar, 144 pips firmer than a Reuters' estimate. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.
Separately, China's trade-weighted CFETS yuan basket index fell to 95.36 in early trade, its lowest level since January 4, 2021, based on Reuters estimates.
Despite China's cloudy macroeconomic outlook, the yuan found some support thanks to a weakening US dollar amid growing market concerns about the Federal Reserve's independence, and some silver linings in the Sino-US trade war.
The yuan is up 0.4% against the dollar this month, and 1.8% firmer this year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
35 minutes ago
- Business Recorder
Corn drops for second session on improved US crop rating; soybeans, wheat down
SINGAPORE: Chicago corn fell on Tuesday, with prices under pressure from a weekly US report showing robust crop condition, boosting prospects of higher output amid plentiful Brazilian supplies. Soybeans eased as quarterly stocks data from the US Department of Agriculture (USDA) pegged June 1 reserves above market expectations, while wheat slid on harvest pressure. The most-active corn contract on the Chicago Board of Trade (CBOT) fell 0.9% to $4.21-1/2 a bushel, as of 0257 GMT and soybeans lost 0.3% to $10.24-1/4 a bushel. Wheat fell 0.1% to $5.38 a bushel. The USDA rated 73% of the nation's corn crop in good-to-excellent condition, up from 70% a week ago and the best since 2018 at this point in the growing season. Brazil's total corn production is expected to hit 130.6 million metric tons in 2024/25, agribusiness consultancy AgRural said on Monday, raising its forecast from the 128.5 million tons it projected earlier this month. Higher inventories of soybeans continued to pressure prices. The USDA reported US June 1 stockpiles of soybeans at 1.008 billion bushels, while analysts surveyed by Reuters on average had expected 980 million bushels. For wheat, prices are being capped by ongoing Northern Hemisphere harvest and ample supplies. The USDA's quarterly wheat stocks figure of 851 million bushels was above most analysts' estimates. Corn eases on supply hopes, soybeans rise ahead of US reports Dry and chilly weather over Argentina in the coming days is set to boost conditions for planting the country's 2025/26 wheat crop, the Rosario grains exchange said on Monday and predicted higher than usual yields thanks to good levels of moisture in the soil. Commodity funds were net buyers of Chicago Board of Trade soybean and soyoil futures contracts on Monday, net sellers of soymeal and wheat and net even in corn, traders said.
Business Recorder
an hour ago
- Business Recorder
Copper inches up on weaker dollar; investors watch US trade talks
SINGAPORE: Coppers prices on the London Metal Exchange and the Shanghai Futures Exchange inched up on Tuesday on the back of a weaker US dollar, while uncertainty persisted on US trade with major partners. The LME three-month copper gained 0.15% to $9,883.5 per metric ton by 0103 GMT, and the SHFE most-traded copper contract gained 0.1% to 79,840 yuan ($11,145.23). 'The worries on the rising US government deficit has weakened the dollar, (which is) supportive to commodities, and my focus for this week will be on the US trade talks,' said a Beijing-based metals analyst from a futures company. The dollar index, against a basket of currencies including the yen and the euro, fell 0.35% to 96.86 on Monday, on track for its sixth straight month of losses, and set to mark its worst half-year since the 1970s. A softer dollar makes greenback-priced commodities less expensive for buyers using other currencies. The US and China had resolved issues around shipments of Chinese rare earth minerals and magnets to the US further modifying a May deal in Geneva, the US Treasury Secretary Scott Bessent had said last week. Copper slips on mixed Chinese data, tariff uncertainty Countries could still face sharply higher tariffs on July 9 even if they are negotiating in good faith, Bessent said, adding that any potential extensions will be up to Trump. LME nickel fell 0.33% to $15,165 a ton, zinc eased 0.31% to $2,743, and lead fell 0.12% to $2,042.5. SHFE nickel fell 0.65% to 120,180 yuan, zinc fell 0.51% to 22,320 yuan, tin dropped 0.27% to 267,410 yuan, and lead ticked down 0.15% to 17,120 yuan.
Business Recorder
an hour ago
- Business Recorder
Australian shares rise on rate cut hopes, US trade deal optimism
Australian shares began the second half of 2025 on a positive note on Tuesday, supported by gains in gold, real estate and tech stocks, as expectations of domestic interest rate cuts and renewed optimism over US trade talks boosted sentiment. The S&P/ASX 200 index rose 0.2% to 8,557.1 points by 0101 GMT after gaining 4.4% in the first six months of the year. Investors are nearly certain the Reserve Bank of Australia (RBA) will cut rates next week, with swaps pricing in a 92% chance of a reduction from the current 3.85% cash rate, following signs of easing inflation in May. Markets are awaiting the retail sales data for May on Wednesday after a weak reading in April raised concerns about consumer spending. Rate sensitive real-estate stocks climbed 0.9%. Local property prices scaled another peak in June as rate cuts and expectations of more to come boosted demand in the face of low housing supply, data showed. Financials eased 0.1%, but remained near record highs, weighed by a 1.6% drop in Commonwealth Bank of Australia. Meanwhile, US trade deals with China and the UK fuelled optimism that a full-blown global trade war can be averted, with investors hoping for more deals ahead of US President Donald Trump's July 9 deadline. Tech stocks gained 0.9%, tracking an overnight rally on Wall Street, where the S&P 500 and Nasdaq notched record closing highs. Gold stocks climbed 1.4% after bullion prices rose overnight as the dollar eased. Australian shares head for sixth straight half-yearly rise Evolution Mining and Northern Star Resources advanced 1.4% and 1.5%, respectively. Insignia Financial jumped as much as 11.3% to become the top gainer on the benchmark index, after announcing investment manager CC Capital is actively working toward a binding takeover offer. New Zealand's benchmark S&P/NZX 50 index rose 0.3% to 12,634.83 points.
