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by USD/CNH–The offshore yuan slipped to a one-month low, trading around 7.266 per dollar. This decline came as the US dollar strengthened after hawkish remarks from Minneapolis Federal Reserve President Kashkari.
USDCNH Analysis – May-29-2024
USDCNH Analysis – May-29-2024
Bloomberg—On Tuesday, Kashkari stressed that the Fed should not cut interest rates until substantial progress in curbing inflation.
According to Maybank, domestic sentiment towards the yuan might improve if China can stabilize its housing market and boost private consumption. Recently, Shanghai took steps to reduce minimum downpayment ratios for homebuyers and ease certain purchase restrictions. These moves are part of a broader nationwide initiative to stabilize the market.
Investors are now looking ahead to the US PCE inflation data for more insights into the global policy outlook. In addition, domestic economic indicators, particularly the Chinese PMI, are also in focus.
Conclusions
Understanding these dynamics can help readers make informed decisions in the current economic environment. The yuan’s performance, influenced by US monetary policy and China’s domestic measures, reflects broader economic trends crucial for investors and consumers.
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