MCX Commodity Tips: China is To Set Base Metal Trend
PBoC devalues Yuan in a bid to support growth The PBOC is saying that in weakening the yuan overnight it is also moving to a more market-determined exchange rate. The step by the People’s Bank of China marks an effort to make the Yuan’s movements more market-driven. China sets a midpoint, or daily fixing, for the value of the yuan against the U.S. dollar. The yuan is allowed to trade 2% above or below that daily reference rate. The central bank’s move comes after disappointing Chinese trade data over the weekend cast doubt on the economic health of the world’s no. two economy. Also, this comes after the International Monetary Fund recently delayed a decision to endorse it as a reserve currency.
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