World markets are anxiously watching the Japanese regulators and the US Federal Reserve as the Yen is falling continuously and there are signs of a possible devaluation of the Chinese Yuan. The question is whether it would affect broader markets and other countries, including India
ANZ's Nitin Agarwal sees the rupee's move towards record lows to be a temporary phenomenon, if the Chinese yuan stabilises with INR expected to hover around 83.60-83.65 levels, assuming no further movement in global factors.
Net foreign currency reserves have fallen to roughly $4 billion from a peak of $15 billion in 2014, pressuring state finances and threatening Bolivia's long-defended currency peg with the dollar.
The U.S. dollar, which rallied in the previous session on mounting worries over China's COVID situation, pared some of its overnight gains and moved broadly lower.
The report also added that the Chinese Government will try to maintain the economic growth and achieve social and economic targets for 2022.
Positioning data shows hedge funds paring net short-dollar positions to $29 billion last week.
China’s central bank, which started testing eCNY last year in four cities, recently expanded those trials to bigger cities such as Beijing and Shanghai
But investors are divided over whether the wind will remain in the renminbi’s sails in 2021
Indian benchmark indices are likely to open flat tracking mixed signals from Asian share and a stronger US market.
In an interview with CNBC-TV18, Ananth Narayan of Standard Chartered Bank said that fall in Chinese Yuan and the appreciation of the US dollar index won't impact the Indian rupee much as the Reserve Bank of India (RBI) has ample dollar reserves to tackle any volatlity.
Through the year, the Nifty tested 6,800 and witnessed its biggest weekly fall since 2009.
Global stocks had their worst drop in more than four years, down more than 6 percent for the week.
The offshore yuan slumped to 6.6650 against the dollar, the lowest rate since the last quarter of 2010. The onshore yuan rate was 6.5418 against the dollar.
But strategists are quick to point out that these inflows don't hinge just on Monday's news.
The decision - which marks another step in China's global economic emergence - came after the IMF evaluated the Asian nation's standing as an exporter and the yuan's role as a "freely usable" currency.
China was studying the possibility of establishing of a multilateral financial institution with Central and Eastern European countries, as well as a joint fund denominated in Chinese yuan, Li said in a speech.
The comments come after the rupee slumped to its lowest since September 2013 this week after China's action on the yuan. The rupee fell 1.87 percent against the dollar this week, its biggest fall since late April.
Mayuresh Joshi of Angel Broking spoke with Ekta Batra & Anuj Singhal on CNBC-TV18. He shared his reading and outlook on market and specific stocks.
Upadhyaya says topline growth was sluggish and will remain so for another quarter. He is hopeful of it picking up from the December quarter onwards.
Speaking to CNBC-TV18 MC Garg, CMD, Goodluck Steel Tubes says the company will continue importing hot rolled coil (HRC) as it was cheaper and viable than the domestic HRC on the back of weakening Russian rubel and Chinese yuan.
The Chinese yuan will reverse its recent weakening trend and appreciate over the next year due to the country's large trade surplus, despite expectations that its central bank will ease policy further, a poll showed.
A busy week ahead starts with Asian markets digesting key weekend events: A widening in the Chinese yuan`s trading band and exit polls showing Crimea has voted to join Russia in a move that could fuel risk aversion.
A large part of the slowdown in China has been caused because yuan has appreciated steadily at a CAGR of 3.5 percent since 2005 and that has now begun to dent Chinese exports.
Technically, the dollar-yen pair is in a clear uptrend. After breaching the symmetrical triangle on the upside, the pair has been consistently moving northwards. A sustained closing above 103.70 will lead the pair higher towards 105 levels.
Mecklai graph of the day: The Chinese Yuan appreciated to high of 6.1532 against the U.S dollar since the government incorporated the official and market exchange rate devaluing Yuan at the end of 1993.