The dollar against the yen grew up to 117,31 yen per dollar with the yen 117,26 previous close. The Euro against the dollar fell to 1.0914 from 1,0926 dollar dollar per Euro a day earlier.
MOSCOW, 11 Jan. Japanese yen in the red, people’s Bank of China weakened the dollar after the previous significant growth, according to AFP. Chinese regulators on Monday, the second consecutive trading session increased the rate of yuan to us currency, which slightly eased concerns of market participants for the state of the economy of the PRC.
As 08.37 MSK the dollar against the yen grew up to 117,31 yen per dollar with the yen 117,26 previous close. The Euro against the dollar fell to 1.0914 from 1,0926 dollar dollar per Euro a day earlier. The dollar index (the dollar against a basket of currencies of six major U.S. trading partners) rose by 0.16% to 98,43 item.
Investors ‘ concerns over China’s economy intensified after the people’s Bank of China weakened the yuan to the dollar in the first week of 2016, more than 1.5%. This was the largest change in the rate of the national currency of the PRC from August 2015, when the deflation of the yuan the strongest effect on global stock markets. However, on Friday the Chinese Central Bank raised the yuan exchange rate against the dollar to 6,5636 with 6,5646 yuan a day earlier. On Monday, the regulator continued strengthening of the yuan, setting the rate at around 6,5626 yuan per dollar.
However, market participants fear that China will allow the yuan to decline further, in order to encourage exporters to remain competitive in the regional market. “We don’t know what will happen tomorrow. If the reference rate would be set lower, perhaps we will again see the same thing that was before,” said Reuters senior analyst for global markets at Sumitomo Mitsui Banking Corp. Akagawa Satoshi (Satoshi Okagawa).
Such doubts leave hope for further strengthening of the yen due to the increased demand for safe assets amid volatile stock market dynamics and the geopolitical situation. In addition, the pressure on global currencies continue to provide December data on the US labor market, provided significant support for the dollar.
U.S. Department of labour on Friday reported that the unemployment rate in the U.S. in December remained at the record low level of 5%. The number of jobs in non-agricultural industries increased by 292 thousand, while analysts polled by Reuters had expected growth of only 200 thousand. Strong statistics has allowed investors to hope that the fed will continue to raise the basic rate in the country faster than expected.