Chinese Yuan Rally after Crackdown on Vicious Selling
The yuan, Chinese currency, rose to around 7.21 per US dollar, rebounding slightly from three-week lows as the prospect of more forceful and concrete policy measures to support Chinese assets lifted sentiment.
Over the weekend, China’s securities regulator vowed to prevent abnormal market fluctuations and crack down on “vicious” short selling, later on adding that it will take forceful measures to prevent risks of margin calls.
A major Chinese sovereign fund also said it would further increase investments in exchange trade funds ( ETFs) to safeguard stable capital market operations.
On the data front, a private survey showed that China’s January services activity remained expansionary for the 13th consecutive month.
Meanwhile, the yuan remained under pressure from expectations that the country will ease policy further to support its struggling economy.
Externally, strong US economic data and hawkish signals from the Federal Reserve dampened rate cut expectations in the US. #Chinese Yuan Rally after Crackdown on Vicious Selling#
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