Chinese Yuan (CNY/USD) and Indian Rupee (INR/USD) Weaken Against US Dollar

Published: 30 May at 4 PM Tags: Dollar, America, USA, China, India,

Before the close of local trade the Chinese Yuan dipped slightly against the US Dollar.

The currency has risen against the safe-haven ‘Greenback’ in recent days, but weakened to 6.1309 Yuan per Dollar despite attempts made by China’s central bank to push the currency higher through daily fixing.

As the Yuan posted gains over several preceding sessions analysts are largely unconcerned with today’s dip and expect the Yuan to bounce back.
Some economists believe that the Yuan could advance in the near-term ahead of an upcoming meeting between the US and Chinese Presidents.

Barack Obama and President Xi Jinping will meet in June to discuss economic relations between their two nations.

It is also possible that the currency will be able to maintain a bullish relationship with its rivals on the expectation that China may widen the scope of the Yuan.

As one Singapore based economist notes: ‘The liberalization rhetoric [of the] last two months has kept people on the Dollar selling side.’
Over the course of 2013 so far the Yuan has gained by 1.6 per cent.

In other Asian currency news, the Indian Rupee clawed back some of its recent losses as industry experts expressed concerns that its recent decline had been ‘excessive’.

The Rupee strengthened to 56.18 prior to the publication of influential US data, including domestic GDP. However, after the US consumer spending was shown to have expanded by more than anticipated in the first quarter of this year the US Dollar broadly strengthened and the Rupee weakened to 56.3800.

Additional Rupee movement can be expected to occur in response to the release of Indian GDP figures, due out tomorrow at 5:30 GMT.

As of Thursday, 30th May 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP USD exchange rate was 1.5234, GBP CNY exchange rate was 9.3396, and GBP INR exchange rate was 85.7161.

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