Chinese Yuan Retreats vs. US Dollar Even as China’s Manufacturing Grows

The Chinese yuan fell against the US dollar today despite the relatively positive report about China’s manufacturing sector.

The seasonally adjusted Caixin China General Manufacturing PMI was at 51.5 in January, unchanged from December and in line with expectations. The report said:

China’s manufacturing sector continued to expand at the start of 2018, with production rising to the greatest extent in just over a year.

Yet the support from the positive data was unable to help the yuan to beat the dollar, which was supported by yesterday’s policy statement from the Federal Reserve.

USD/CNY gained 0.1% to 6.2952 as of 13:06 GMT today.

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