Yuan forwards complete worst week since June

Yuan forwards completed the worst week since June after a private report showed manufacturing in China unexpectedly contracted.

By (Bloomberg)

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Published: Sun 26 Jan 2014, 11:15 PM

Last updated: Sat 4 Apr 2015, 4:46 AM

The preliminary reading for a Purchasing Managers’ Index was 49.6 for January, HSBC Holdings Plc and Markit Economics said on Friday. That was lower than December’s final figure of 50.5 and the 50.3 median estimate of 19 analysts in a Bloomberg survey. A number below 50 indicates contraction. China’s benchmark money-market rates fell this week after the People’s Bank of China pumped funds into markets to ease a cash squeeze.

“The PMI data was a disappointment and triggered concerns that China’s growth trend could reverse,” said Ho Man Chun, an economist and strategist at Bank of Communications Co’s Hong Kong branch. “The yuan also got dragged down as onshore liquidity has become looser after injections, which means less demand for the currency.”

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