SHANGHAI: China’s yuan rebounded from a three-week low against the US dollar on Thursday, underpinned by hopes of an end to the war in Ukraine and a consistently firmer daily fix by the People’s Bank of China.
Optimism over prospects of a peace deal between Ukraine and Russia helped riskier assets and kept the dollar on the defensive despite a jump in Treasury yields as hot inflation threatens to close the door to any policy easing in the US this year.
Prior to the market opening, the PBOC set the midpoint rate , around which the yuan is allowed to trade in a 2% band, at 7.1719 per dollar – 1,281 pips firmer than a Reuters’ estimate.
