Weekly FX roundup: Markets up on China Yuan announcement

21 June 2010

The markets kick started this week on a very positive note as the People's Bank of China announced over the weekend that China will de-peg the Yuan from the US Dollar. The accompanying statement from the PBoC stated its intention to proceed further with reform of the renminbi exchange rate regime and to enhance the renminbi exchange rate flexibility. Markets were expected to respond extremely favourably on the news and boy did they ever - Asian equities, currencies and commodities all opened Monday's trading session at an upward gap - Japan's Nikkei was higher by 2.43%, Shanghai's Composite index was higher 2.90%, the Australian Dollar opened at an 80 point gap and proceeded to move above 0.8850 levels and finally Gold hit its new all time high of 1265.30 per troy ounce at the time of writing. With US-China trade tensions now talking a backseat, markets should continue to enjoy their recent gains against the Dollar throughout the start of the week with safe havens like the Greenback and Swiss France looking particularly weak on the news.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications