Yuan Strengthens Amid China’s Support for Property Sector
The Chinese yuan has reportedly strengthened to its firmest in two and a half weeks against the dollar. This development comes in the wake of new measures introduced by China’s central bank to bolster the beleaguered property sector. The People’s Bank of China’s announcement sent the US dollar tumbling by a notable 0.4% against the onshore yuan to 7.2485. This marks the lowest level for the dollar since August 14.
Allowing Lower Mortgage Rates
To aid the struggling property market, the People’s Bank of China has decided to permit existing mortgage rates to be decreased from September 25. As a result, the yuan has seen a significant boost and is now stronger than it has been in several weeks. This move has been received positively, as shown by the strengthening of the currency.
Impact on Offshore Market
The offshore market also saw the yuan trading at 7.2755 per dollar, indicating the broader impact of the central bank’s decision. The offshore market, a crucial component of the global financial system, is closely watched by investors and analysts for signals about economic trends and currency movements.
Reporting and Standards
This news was reported by Samuel Indyk and edited by Alun John. Like all Reuters reports, it adheres to the Thomson Reuters Trust Principles, which ensure accurate, unbiased reporting. To maintain this standard, the principles dictate that all news be reported in an honest and equitable manner.
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Original Story at www.reuters.com – 2023-08-31 12:41:00
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