Yuan Forwards Strengthen as Record June Exports Signal Recovery
Yuan forwards climbed for a third day after the government reported record exports in June and the largest trade surplus in eight months.
Overseas sales jumped 43.9 percent from a year earlier to $137.4 billion and the trade surplus more than doubled to $20 billion, the highest level in eight months, the customs bureau said July 10. The U.S. government stopped short of branding China a currency manipulator on July 8 and said the yuan “remains undervalued” after the nation ended a two-year peg to the dollar on June 19.
“China’s trade number was pretty positive and there might be a bit of pressure from Washington for the yuan to appreciate at a faster pace,” said Brian Jackson, an emerging-markets strategist at Royal Bank of Canada in Hong Kong. Yuan forwards “should see a bit of that” appreciation pressure this week, he added.