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China’s government is trying to level rising concerns over further rate of yuan and makes it with some success.
Yuan had a strong upward trend during the last two weeks. Its rate versus the US dollar was at the highest point in domestic market on Friday. It was observed also a significant growth towards area of extremum in external market since December.
Yuan started growing on December 2 just before annual meeting of National People’s Congress and indicated its peak on Friday. It had happened on the day before the PBOC tried to lower concerns over future of Chinese currency at the press conference.
Chaoping Zhu, economist at UOB Kay, thinks that sharp strengthening of national currency is caused by intention of the government to demonstrate a stable financial system of the country.
Yun fell at the Asian session on Monday to 6.4943, in domestic market. The price reached on Friday it’s the lowest rate for February 15th at 6.4866.
Offshore yuan is traded without connection to range that the PBOC indicated for domestic market. The pair reached 6.4913 at the Asian session on Monday against 6.4905 on Friday.
Representatives of Shanghai stock exchange say that the PBOC, perhaps, took a pause after it had raised level of fixing of its currency.
The PBOC gave everyday interventions, using leading Chinese commercial banks as agents. The PBOC bought yuan versus the US dollar in order to weaken a downside pressure.