Yuan rising after release of strong economic data
2023.03.01 04:04
Yuan rising after release of strong economic data
By Ray Johnson
Budrigannews.com – The majority of other currencies that are exposed to China gained for the day, which resulted in a sharp rise in the Chinese yuan on Wednesday as bets on the country’s economic recovery were increased by stronger-than-expected data on business activity.
As China’s reached its highest level in over a decade, supported by stronger-than-expected growth in both and activity, the rose 0.4%, moving closer to its lowest point this year.
The data indicated that China’s economic recovery gained momentum over the past month after the country relaxed most anti-COVID measures in January, leading to a 0.5% increase in the against the dollar.
With gains in the yuan spilling over into most other regional currencies with high trade exposure to China, a recovery in China bodes well for broader Asian economies that trade with the country.
In holiday-thinned trade, the jumped 0.5% while the climbed 0.3 percent. despite data showing that the country’s economy slowed significantly in the fourth quarter due to pressure from higher interest rates and inflation, the gained 0.3 percent.
Also, in January, growth was lower than expected.
With a gain of 0.8 percent, the led gains across Southeast Asian currencies, while the gained 0.6 percent.
Despite this, concerns over rising inflation and a hawkish Federal Reserve continued to weigh heavily on the majority of Asian currencies in February. After a sharp rise in February, the dollar has maintained its close to two-month high against a basket of currencies.
Following overnight losses on weaker-than-expected economic readings, the and were muted on Wednesday.
This week, most attention is paid to February, which is due on Wednesday and Friday. The Fed has more economic leeway to keep raising interest rates if the U.S. economy shows signs of resilience, which hurts Asian markets.
This week, economic indicators for the region were also the focus. After data showed that the country’s economy was still shrinking through February, the fell 0.1 percent, remaining close to its lowest point this year.
The country’s in 2022, much faster than that of most of its Asian neighbors, showed a 0.1% increase, according to data. However, the fourth quarter also fell short of expectations in a small way.
