Published: Mon, August 12, 2019
Markets | By Otis Pena

RMB rate 'in line with fundamentals'

RMB rate 'in line with fundamentals'

More importantly, maintaining the stability of the yuan is the key to maintaining China's economic stability amid the intensified US-China trade frictions, and foreign exchange reserves should serve as an economic "stabilizer".

Since the trade spat between the world's two largest economies erupted in March past year, the dollar has gained more significant than three percent against a basket of currencies.

Indexes started lower Friday and the losses accelerated after President Donald Trump said it was "fine" if a meeting on trade with China next month doesn't happen.

The Dow Jones Industrial Average fell 90.75 points, or 0.34%, to 26,287.44, and the S&P 500 lost 19.44 points, or 0.66%, to 2,918.65.

USA stocks fell on Friday, capping a week of trading that saw big swings and high volume.

Trump also sowed confusion by saying that the United States would not do business with Chinese telecoms giant Huawei Technologies, only to have a White House official later clarify that he was referring to a ban on US government purchases of Huawei equipment, not requests for sales by USA companies, which are still being assessed. Mu said this was very different from a "single-tier" system, whereby the central bank released tokens directly to the public.

The International Monetary Fund (IMF) on Friday said that it stood by its assessment that the value of China's RMB was largely in line with economic fundamentals, following the United States decision to designate China as a currency manipulator, reported Reuters. Domestically, the conflicts added a new dimension to China's balancing act: how to support the economy while avoiding an exchange rate that widens its rift with the U.S.

5 children killed in day care center fire in Pennsylvania
She added that the children had been staying at the day care because their parents were working overnight. It is understood the fire started in the living room on the ground floor before it quickly spread.

"We saw growing profit in South America previous year, especially from key markets such as Chile, Argentina, Ecuador and Peru", said Li Junzhi, head of Dongfeng's worldwide business department.

The U.S.'s move is an "appalling" act to gain an advantage during trade negotiations and is doomed to fail, the Communist Party's flagship newspaper People's Daily said in a commentary Saturday.

A flight to perceived safe-haven assets helped to lift the price of gold above $1,500 last week for the first time since April 2013.

Former PBOC Governor Zhou Xiaochuan said at the gathering that conflicts with the US could expand from the trade front into other areas, including politics, military and technology.

Technology and communications companies were among the biggest losers in early trading.

"The market took the higher (yuan) fixings in its stride and will now focus on establishing a new equilibrium for USD/CNY". And yet, despite these concerns, MarketWatch analysts have argued that the current currency fluctuations aren't so similar to past situations because the European Union and Japan will likely pressure China to keep its currency in check. Brent crude, the worldwide standard, rose $1.15 to $58.53 per barrel.

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