Yuan Gains, US Dollar Unchanged

The People’s Bank of China set the official reference rate for the Chinese currency to its lowest level since 2008. The yuan rose against the US dollar on Thursday in Asia

The Chinese yuan came under scrutiny this week after crossing a closely watched US $ 7 bar, prompting the Treasury department to label Beijing as a currency manipulator.

As the yuan broke the 7th main level this week, the fix was awaited earlier. Today’s daily determination was stronger than expected, according to forecasts compiled by Bloomberg and Reuters. The PBOC set its daily reference rate at 7.0039 per dollar on Thursday.

On the data front, China’s US dollar exports to July rose unexpectedly from a year ago, while imports fell less than expected.

Green dove overnight before recovering shortly after US President Donald Trump has reiterated his allegations that the Federal Reserve is not cutting rates fast enough.Meanwhile, the US dollar index slightly changed to 97,368.

Trump tweeted that the Fed should “lower rates faster and faster,” and that “our problem” was not China, but the US Central Bank.

The NZD / USD pair recovered 0.2% to 0.6457 after collapsing yesterday following the New Zealand Reserve Bank’s surprise decision to cut its policy rate to a low.