Yuan Fluctuates as Bernanke Reduces Fear

The Chinese yuan advanced today as yesterday’s comments of Federal Reserve Chairman Ben Bernanke reduced fear among Forex traders, increasing demand for currencies with higher yield.

Bernanke said yesterday that the benefit of accommodative measures outweigh potential risks. Previously, market participants were worried that the Fed may drop stimulus. It is very likely that absence of monetary easing would be disastrous for the US economy and this could damage global growth. The currency fell later and trades near the opening level as of now.

USD/CNY traded at the opening price of 6.2342 as of 13:09 GMT today after falling to 6.2263 intraday.

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