Sun, Apr 26, 2015 - Page 15 News List

Yuan gains again on stimulus bets and IMF review

Bloomberg

The yuan posted a second weekly advance on speculation China’s leadership will support the yuan’s case for being named a global reserve currency and announce more stimulus to revive a slowing economy.

A preliminary manufacturing index (PMI) fell to the lowest in a year, according to data from HSBC Holdings PLC and Markit Economics on Thursday.

China is making the yuan more “freely usable” to be included in the IMF’s Special Drawing Rights (SDR) basket of reserve currencies, People’s Bank of China Governor Zhou Xiaochuan (周小川) said in Washington on Saturday last week.

The IMF’s board is scheduled to conduct a twice-a-decade review in October.

The yuan advanced 0.05 percent for the week and on Friday day to close at 6.1950 to the US dollar in Shanghai, China Foreign Exchange Trade System prices show. In Hong Kong, the currency was unchanged from Friday last week and rose 0.02 percent on Friday to 6.1946 as of 5:11pm, according to data compiled by Bloomberg.

The New Taiwan dollar rose to a five-month high as stock inflows reached the highest in seven years amid speculation about the creation of an equity link with China.

Global funds bought NT$46 billion (US$1.5 billion) more shares than they sold on Friday, preliminary exchange data show, as the TAIEX surged to a 15-year high.

China’s securities regulator is studying a trading link between the Shanghai and Taipei bourses, the Economic Daily News reported on Wednesday.

The NT dollar strengthened 0.3 percent on Friday and 0.4 percent this week to NT$31.051 against the greenback, Taipei Forex Inc prices show.

The won climbed 0.4 percent from Friday last week and 0.2 percent on Friday to 1,079.53 won a dollar as of the 3pm close in Seoul, data compiled by Bloomberg show.

The ringgit fell 0.3 percent to 3.6235 a dollar in Kuala Lumpur, according to data compiled by Bloomberg.

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