The Strategist

China raises the yuan to one-month high against the dollar

08/11/2022 - 08:14

China increased the interim yuan-dollar exchange rate to a one-month high, according to Reuters.

faungg's photos via flickr
faungg's photos via flickr
After the revelation of a lower-than-expected U.S. inflation rate, China pushed the intermediate yuan rate to a nearly one-month high versus the dollar on Thursday, which reflects the overall weakening of the American currency in global markets.

The intermediate yuan-dollar exchange rate was fixed by the People's Bank of China at 6.7324 before to the market opening, up 0.43% from the previous fix of 6.7612 and the highest level since July 14.

After the release of the U.S. inflation report for July, which was worse than anticipated and confirmed predictions of a less aggressive interest rate hike cycle by the Federal Reserve, the dollar dropped against other major currencies.