At the beginning of this year, the People’s Bank of China (PBoC) engineered a decline in the renminbi, with the currency experiencing its biggest monthly drop on record against the U.S. dollar in March. The move was designed to dispel the belief that the yuan was a one-way bet and to ease pressure on China’s export sector.
Unless you’ve been living (and trading) under a rock over the last month, you know that the U.S. dollar has been surging against all of its major rivals since mid-August.Unless you’ve been living (and trading) under a rock over the last month, you know that the U.S. dollar has been surging against all of its major rivals since mid-August.
The dollar touched the strongest in almost six years versus the yen as Treasury yields climbed on speculation U.S. economic reports this week will back the case for the Federal Reserve to boost interest rates next year.
According to the most recent triannual review from the Bank of International Settlements, the renminbi was the ninth most actively traded currency in 2013 with a 2.2 percent share, up from 0.9 percent in 2010.