Chinese Yuan hits record high against US dollar - Wall Street Journal

[Chinese-Dragon]

(Credit to @cirr again for finding this story. )


Chinese Yuan hits record high against US dollar - Wall Street Journal

August 16, 2013, 3:22 a.m. ET

The Chinese yuan hit a record high against the U.S. dollar on Friday, amid growing expectations that China's economy has stabilized.

The yuan reached 6.1090, a gain of 0.06%, in early trade due to strong demand from corporations and broad weakness in the dollar, which fell against major currencies on Thursday. At 0605 GMT, it was trading at 6.1114.

The yuan, officially known as the renminbi, is on course for its fourth consecutive weekly gain and has risen 2% this year. The Shanghai Composite Index, meanwhile, is up nearly 10% this month.

Economists and traders say the Chinese currency is likely to strengthen further in coming months, partly due to expectations of higher interest rates in China.

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Good news for us. FDI is also reaching record levels:

China June FDI rises at fastest pace in more than two years | Reuters

 

[faithfulguy]

coupling with the crashing of rupee. Chinese goods will be out of reach of most Indians.

 

[Chinese-Dragon]

coupling with the crashing of rupee. Chinese goods will be out of reach of most Indians.

That's fine. They are paying more Rupees for everything nowadays anyway.

Of course, the irony is that India's large trade deficit is a major factor in the collapse of the Rupee.

 

[faithfulguy]

That's fine. They are paying more Rupees for everything nowadays anyway.

Of course, the irony is that India's large trade deficit is a major factor in the collapse of the Rupee.

Also, the problem is that India exports jack. So they are not benefiting from lower rupee.

 

[beijingwalker]

since almost all India's weapons are bought from foreign countries,that will add a lot of stress to India's defence budget.

 

[SirHatesALot]

Superior Chinese even manage to bring India into this Congratulations

 

[indiatester]

Congratulations to China. Anyone know how I can open a trading account in China/Hongkong?

 

[Chinese-Dragon]

Congratulations to China. Anyone know how I can open a trading account in China/Hongkong?

I'm not sure what the process is for foreigners.

But it is easy to trade on the Hang Seng Index.

Just ask your stockbroker, or even better open up an HSBC bank account for internet trading.

ICBC also has branches around the world, you can open an account with them.

 

[Götterdämmerung]

Chinese Yuan could even be the same value as dollar if China didn't buy so manny American obligations. China tries to keep the Yuan low in value for the export. Having low value currency is good for export.

Only if you have the stuffs that other people want, else your cheap currency only makes your life more miserable since all imported products (e.g. raw material, energy) will be more expensive ... forget to even think of buying BMW, Porsche or French champagne.

 

[Chinese-Dragon]

Superior Chinese even manage to bring India into this Congratulations

Well the other major story is the collapse of the Rupee, so comparisons are inevitable.

Especially on PDF.

 

[karan21]

Well the other major story is the collapse of the Rupee, so comparisons are inevitable.

Especially on PDF.

Why bringing India into all this. You are one mature experienced poster and know well that most of the trolls here are just to bash China. We all have seen China's rise and respect it you didn't need to stoop so low just to prove your point.

 

[Chinese-Dragon]

Why bringing India into all this. You are one mature experienced poster and know well that most of the trolls here are just to bash China. We all have seen China's rise and respect it you didn't need to stoop so low just to prove your point.

Except I didn't bring India into this.

Read the thread, it was post #2 that first mentioned the Rupee. I didn't mention it at all in the OP.

The point is that obviously there is a big contrast here, since the big economic story out of Asia at this moment is the collapse of the Rupee. So you can't blame faithfulguy for bringing that up.

 

[OrionHunter]

I thought this bl00dy thread was about China? How and why does India figure here? Can't the Hans do without it? They seem to be totally psyched!

The Hans probably can't digest their noodles without mentioning India in every goddamn thread! Jeeez! Mental block?

 

[sms]

Congratulations to China. Anyone know how I can open a trading account in China/Hongkong?

I'm not sure what the process is for foreigners.

But it is easy to trade on the Hang Seng Index.

Just ask your stockbroker, or even better open up an HSBC bank account for internet trading.

ICBC also has branches around the world, you can open an account with them.

HKG - Open account with HSBC. Standard Charted you can trade in Hong Kong. Beware - your account in HK cannot bre linked with Indian account or vice versa.

China - Rather difficult for foreigners to trade and it's more difficult to bring money out of China. SO I propose you to drop that idea.

On topic- the RMB rise was imminent. It's just China did not allow to give free hand to mkt to decide RMB vale. There people who still thinks that RMB is still under rated and further rise to 5.6 ~5.8/ dollar.

 

[kawaraj]

This is still the issue of trade structure.

China, US and EU are major importer of global resources, when they slow down, the first round of hit goes to major economies. Yet when they get stronger, like the rebound in the US, put yet another round of pressure on emerging currencies. You have to change this trade status to get out of the trap.