International Development News
Development News Edition

FOREX-Yen rises, offshore yuan dips on caution over Sino-U.S. trade talks

FOREX-Yen rises, offshore yuan dips on caution over Sino-U.S. trade talks
Image Credit: Pixabay

The yen gained slightly and the yuan slipped a tad in early Asian trade on Monday on a media report that China wants the scope of this week's trade talks and any deal with the United States to be narrow. Bloomberg reported that Chinese officials are signalling they are increasingly reluctant to agree to a broad trade deal pursued by U.S. President Donald Trump.

That report knocked down the dollar against the yen during thin early Monday trade to as low as 106.55 yen. The U.S. currency has so far found some support around a one-month low of 106.48 touched last week.

It last traded at 106.82 yen, down 0.11% from late Friday U.S. levels. The yuan weakened about 0.20% in offshore trade to 7.1285 yuan per dollar. There was no onshore trading as Monday is the last day of China's holiday break for its national day.

Yukio Ishizuki, senior strategist at Daiwa Securities, said he believes the impact of the media story "will not last long, with U.S.-China trade talks due later this week, ahead of a planned tariff hike on Oct. 15." Top-level U.S.-China trade talks are scheduled to resume Thursday and Friday, when Chinese Vice Premier Liu He meets U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington.

Trump last month delayed hiking levies on $250 billion worth of Chinese imports to 30% from current 25% to Oct 15. from originally scheduled Oct. 1 "as a gesture of good will". "The United States probably does not want to raise tariffs given recent signs of softening in the U.S. economy, and markets hope for some sort of deal that allows them to keep talking in the future," Ishizuki said.

Last week saw a string of soft U.S. economic data that raised doubts on the assumption by many that the U.S. economy will be more resilient than other economies to damage from Sino-U.S. trade war. Such worries eased slightly after U.S. September non-farm payrolls data on Friday came in fairly strong and the jobless rate fell to near a 50-year low.

But that did little to change market expectations that the Fed will cut likely interest rates at its next policy review on Oct. 29-30 to support the economy. Sentiment about the dollar is further complicated by the uncertain U.S. political outlook, as Trump faces an impeachment inquiry in the U.S. House of Representatives.

As the dollar has lost momentum, the euro stood at $1.0982 , up 0.02% in Asia, recovering little by little after having hit a near 2 1/2-year low of $1.0879 last Tuesday. Sterling traded little changed at $1.2336, with uncertainties on Brexit keeping many investors on the sideline.

Britain's Brexit minister said the UK is open to some flexibility on the proposed mechanism that would allow lawmakers in post-Brexit Northern Ireland to decide whether the British province remains in regulatory alignment with the European Union. With less than a month until the U.K.'s scheduled exit on Oct 31, British Prime Minister Boris Johnson is seeking significant changes to how the most contentious issue - the border between British-ruled Northern Ireland and EU member Ireland - was dealt with in the divorce deal agreed by his predecessor, Theresa May, almost a year ago.

The European Union and Ireland said last week that the proposals were unlikely to yield a deal.

Also Read: Rugby-United States team to play France at the World Cup

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



'No escape from telephones', this 1953 prediction actually comes true

In 1953, a telephone company chief predicted that therell be no escape from telephones in the future....

With Ayodhya verdict, CJI starts clearing high profile pending cases

Ending all the speculations, the Chief Justice of India Mr. Ranjan Gogoi who is due to retire on November 17 decided to deliver the verdict in Ayodya dispute at 10.30 am on Saturday which is not a working day for the Supreme Court. This is ...

How partnerships and collaborations could enhance teacher training

Monica Malhotra Kandhari, Managing Director, MBD Group shares her views on public private partnership and collaborations in education sector. She supports her propositions with her organisations success stories....

Fixed Test centers would facelift level of WTC in India

The venues for the test matches in India should be fixed so that World Test Championship matches remain fair....


Latest News

UPDATE 2-China says outspoken Australian lawmakers should repent

Two Australian lawmakers who were denied entry to China for a study tour because of their outspoken criticism of Beijing must repent and redress their mistakes if they want to visit the country, Chinas embassy in Canberra said. Andrew Hasti...

Odisha govt approves investment proposals worth Rs 1,753.82 cr

The Odisha government has approved six investment proposals worth Rs 1,753.82 crore in different sectors, which would create employment opportunities to 5,566 people, official sources said. The six projects in textile, food processing, plas...

Doncic, Porzingis carry Mavericks past Raptors

Luka Doncic had 26 points, 15 rebounds and seven assists as the Dallas Mavericks defeated the visiting Toronto Raptors 110-102 Saturday night. Kristaps Porzingis added 20 points and 15 rebounds for the Mavericks, who had lost their two prev...

McCollum helps Blazers avoid disastrous collapse

CJ McCollum scored 32 points and Hassan Whiteside added 21 points and 12 rebounds as the visiting Portland Trail Blazers built a huge early lead, gave it all back and more, but then rallied for a 121-116 win over the San Antonio Spurs on Sa...

Give Feedback