On Thursday, the 8th of August 2019, American dollar inched higher and Chinese Yuan rebounded from a decade low figure after People’s Bank of China (China’s Central Bank) had fixed midpoint for Yuan at a much-stronger level than anticipated.
In point of fact, after experiencing a havoc-scale volatility in the currency market amid a flurry of uncertainties, currency markets calmed down and volatility gauge seemed to be weakening after China set midpoint rate for its currency at 7.0039, however, the midpoint price for offshore Yuan had still been in its weakest level in more than a decade.
Further into the bargain, a surprise surge in China’s exports on July had overhauled currency traders’ risk-appetite and eased frets of a currency war. Citing that the risks of a havoc-scale currency market volatility seemed to be out of sight in a near-term outlook, a senior FX strategist at TD Securities in New York, Mazen Issa said, “Last night fixed over 7 and markets seem to be taking that fairly well, so perhaps some calm is installed in the market at least for the very near term.
” Quoting statistics, on Thursday’s (August 8th) market closure, US dollar index (DXY) measured against a basket of six major currencies in an average, had been a penny up to 97.61, while euro slid 0.07 percent to $1.1193 against its American counterpart and the British currency ended the flatlined to $1.2140.
Nonetheless, safe-haven currencies and commodities kept gaining against American dollar, as Japanese Yen added 0.32 percent to 105.86 yen per US dollar on Thursday’s (August 8th) market closure, and Swiss Frac rose 0.13 percent to $0.9735.
Meanwhile, Australian dollar, a closely-monitored indicator for the health of Chinese economy added 0.55 percent to $0.6797 after dwindling to a record low figure of $0.6677 on Wednesday (August 7th), while crude-oil price dependent Canadian Dollar added 0.54 percent to $1.3234.