China’s currently trying to disperse growing anxiety regarding the strength of its national currency.
For the last two weeks, the given currency has boasted decent revenues, hitting the strongest value against the evergreen buck.
The hike actually began on March 2, right before a two-week annual gathering of China’s legislative body and hit its climax on Friday, exactly the day before China’s central banker had to clarify disputes over the Yuan depreciation.
Apparently, the Yuan’s recent strength can be explained by the government’s plan to maintain an upbeat image of financial stability at the legislative meetings.
On Monday, the greenback dived to 6.4943 Yuan. During intraday session, the major Chinese currency achieved 6.4866, the strongest value against the US dollar since February 15.
Meanwhile, on Monday, in the offshore market, exactly where the major Chinese currency isn’t restricted by a corresponding trading band set up by the Chinese central bank, it got to 6.4910 against the greenback, thus paring profits from the recent high of 6.4821 – a fresh climax since December 8.