USD/CNH trades sub 6.61, new RRR rules into effect today

By FXStreet FXStreet (Bali) – USD/CNH is trading at 6.6070 last, with sellers attempting to resume the downward momentum following a correction off 6.60 round number, after a fairly strong selling from 6.6150 last Friday.

Today’s USD/CNY fix, which saw a slight strengthening of the Yuan, has added some pressure to the USD/CNH.

As a reminder, the new offshore Yuan RRR rules on yuan deposits of offshore branches of mainland banks, come into effect today, after last week’s PBOC announcement.

The measures on RRR by the PBOC, aimed at reducing speculative bets against the offshore Yuan, make the borrowing of offshore Yuan more expensive, together with recent PBOC intervention off 6.70+ in USD/CNH, have allowed the gap between CNY and CNH to close down.
For more information, read our latest forex news. …read more

Source:: FX Street