Offshore yuan dips, yen gains on HK rights bill news

Business | 28 Nov 2019 2:34 pm

The safe-haven yen gained and risk-sensitive currencies fell today after U.S. President Donald Trump’s formal endorsement of Hong Kong’s anti-government protesters, seen as potentially derailing recent Sino-U.S. progress on trade.

The offshore yuan fell on worries the Hong Kong Human Rights and Democracy Act would worsen already fractious relations between the United States and China.

The Swiss franc and gold also gained as investors sought other safe harbors due to concerns about a potential increase in geopolitical risk.

“The yen is being bought because of the news about Trump signing the Hong Kong bill,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo. "Algorithmic trading could push the yen up further, but the dollar’s losses will be limited because we’ve had positive U.S. economic data, which has lifted sentiment.”

The yen edged up by 0.12 percent to 109.42 versus the dollar on Thursday, rebounding from a six-month low reached Wednesday after U.S. economic growth was revised up in the third quarter.

The Australian dollar, which is often traded as a proxy for global commodity demand, fell to a six-week low of US$0.6764.

In the offshore market, the yuan fell by 0.18 percent to 7.0269 per dollar. In the onshore market, the yuan was little changed at 7.0280 versus the greenback.

Search Archive

Advanced Search
December 2019
S M T W T F S

Today's Standard



Yearly Magazine

Yearly Magazine