SHANGHAI: China’s yuan edged up against the dollar by midday on Thursday as a recovery in the country’s major stock indexes boosted sentiment on the currency in spite of a weaker midpoint.
The benchmark Shanghai Composite Index was up 1.55 per cent by midday partly as a strong rebound on Wall Street helped calm global markets after days of wild volatility.
“More money flows into the currency market after a slew of easing policies have also boosted sentiment in the stock market,” said a trader at a foreign bank in Shanghai.
“But the recovery on the yuan may be just a flash.” he said. “Many companies and big investors are worried about the prospect of the currency’s depreciation.”
