China’s money-market rate had its biggest weekly gain since March on speculation cash supply will wane as the central bank drains capital. The yuan was steady.
The yuan fell in Hong Kong’s offshore market by the most in 15 months and the onshore spot rate retreated from a 19-year high as China stepped up scrutiny of cash transfers from abroad.
China’s benchmark money-market rate dropped the most in a week on speculation capital inflows will increase as yuan appreciation quickens, boosting cash in the financial system.
China’s yuan dropped after a Greek rating downgrade fueled concern the global recovery will stall, boosting demand for safer assets.
China’s yuan was little changed on concern a slowdown in the U.S. economic recovery will prompt the central bank to decelerate appreciation to protect exports.
China’s yuan rose toward a 17-year high on speculation policy makers will permit more gains to help contain inflation, which accelerated in all but one of the seven months through January.
China’s yuan forwards declined by the most in two weeks after the Federal Reserve indicated it will probably end its bond-buying program this year.
China’s yuan retreated from the upper limit of its trading band, reaching a one-week low, on speculation the central bank intervened to combat appreciation that hurts exporters.
China may limit its purchases of U.S. Treasuries because the central bank has reduced its buying of dollars at home, according to a Chinese academic who has served as a government adviser.
China’s slower-than-forecast cuts in banks’ reserve requirements show authorities are reluctant to shake their concern inflation will quicken, three months after Premier Wen Jiabao shifted priorities to boosting growth.
"The moves in the reference rate show the central bank is favoring a stronger currency."
- Liu Dongliang on May 16, 2013