China's yuan firms on strong Sept export growth - REUTERS
OCTOBER 13, 2021
SHANGHAI, Oct 13 (Reuters) - China's yuan firmed on
Wednesday, as data showed September export growth unexpectedly
picked up, while investors awaited U.S. data due this week for
more signals on when the Federal Reserve would taper its
crisis-era bond buying programme.
The People's Bank of China set the midpoint yuan rate
at 6.4612 per dollar prior to market open, weaker
than the previous fix of 6.4447.
In the spot market, the yuan opened at 6.4509 per
dollar and was changing hands at 6.4456 at midday, 16 pips
stronger than the previous late session close.
China's exports in September rose 28.1% from a year earlier,
beating analysts' expectations, as solid global demand offset
some of the pressure on factories from power shortages and a
resurgence of domestic COVID-19 cases.
Overnight, the dollar hit a one-year high on expectations
the U.S. Federal Reserve will taper its massive bond-buying
program next month, and on concerns over soaring energy prices
which would fuel inflation.
Investors are waiting for U.S. Consumer Price Index data on
Wednesday and retail sales data on Friday for further clues as
to when the Fed might begin winding down stimulus.
Three Fed policymakers on Tuesday said the economy has
healed enough for the central bank to begin to withdraw its
Separately, China said on Tuesday it will liberalise
coal-fired power pricing to tackle a worsening energy crisis
which has led to production curbs across various industries.
Higher electricity prices may push up prices of Chinese
exports to a certain extent in the medium term, and the
resulting reduction in the trade surplus may place certain
depreciation pressure on the renminbi exchange rate, investment
bank CICC said.
By midday, the global dollar index stood at 94.356,
while the offshore yuan was trading at 6.4485 per