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Yuan Rises After China Key Rate is Reduced

Yuan Rises After China Key Rate is Reduced

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Jim Anderson - Public Relations

On Monday, the Chinese yuan rose in Asia after the country’s central bank lowered its key liquidity rate for the first time since 2015.

In the morning on Monday, the USD/CNY currency pair rose by 0.1% to 7.0112. For the first time since October 2015, the People’s Bank of China lowered the interest rate on seven-day repurchase agreements. The country aims to increase business confidence after a series of weak economic data releases last week.

The US dollar index fell by 0.1% to 97.810. on Wednesday, the Fed will release the October meeting protocol, and several regulator representatives will address the upcoming Thanksgiving holiday.

Chinese-US trade negotiations are making progress. Xinhua, China’s state-run news agency, said on Saturday in a phone conversation that Vice Premier Lui He discussed the conclusion of the first stage of the deal with US Secretary of the Treasury Stephen Mnushin and US Trade Representative Robert Lighthizer.

The parties held a “constructive discussion” of “the main subjects of concern”, the article said. The U.S. sales representative confirmed that the call had taken place.