Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the Iranian attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper...Defenseread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
"Sure, the trade war's taking its toll on business ... it's just not taking its toll where it was supposed to," Jim Cramer says.Mad Money with Jim Cramerread more
Joe Biden called on President Donald Trump Friday to release the transcript of a call with a foreign leader that is the subject of a whistleblower complaint. Biden described...Politicsread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Palantir Technologies is targeting a valuation of at least $26 billion in a private fundraising round, the first for the Peter Thiel-backed data analytics startup in four...Wall Streetread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The New England Patriots released Antonio Brown just 11 days after signing the wide receiver. The NFL Super Bowl champion team initially had kept him in the face of a rape...Sportsread more
A tour bus carrying Chinese-speaking tourists crashed near a national park in southern Utah, killing at least four people and critically injuring up to 15 others, authorities...U.S. Newsread more
SHANGHAI, June 10 (Reuters) - China's onshore yuan weakened to a more than six-month low on Monday, catching up with losses in its offshore counterpart over a long weekend after the central bank governor said there was no red line for the exchange rate. Markets widely interpreted Yi Gang's reported comments as a sign that authorities will tolerate more slippage in the yuan, but the central bank set a stronger-than-expected official midpoint on Monday, curbing losses in morning trade. "The trade war would have a temporary depreciation pressure on renminbi, but you see, after the noise, renminbi will continue to be very stable and relatively strong compared to emerging market currencies, even compared to convertible currencies," Bloomberg quoted Yi as saying on Friday, where he used the yuan's official name. Yi also said no "numerical number" for the exchange rate was more important than another, as the yuan neared the key psychological support level of 7 to the dollar. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.8925 per dollar, 20 pips or 0.03 percent firmer than the previous fix of 6.8945. Monday's guidance rate came in higher than market consensus, similar to fixings seen in past weeks. It was 31 pips firmer than Reuters estimate of 6.8956 per dollar. In the spot market, the onshore yuan opened at 6.9210 per dollar and fell to a low of 6.9366 per dollar, the weakest level since Nov.30. As of midday, it was changing hands at 6.9336, 218 pips weaker than the previous late session close and 0.60 percent away from the midpoint. The offshore yuan traded at 6.9522 at midday. It weakened to a low of 6.9619 after Yi's remarks on Friday, when onshore markets were closed for the Dragon Boat Festival. "I think policymakers are testing market reaction," said one trader at a Chinese bank. "If the market is not overly panicked, some weakness in the yuan is acceptable, if it's needed for the trade war." Tommy Xie, head of Greater China research, said China may continue to control the pace of yuan depreciation before a G20 summit in Japan later this month where Chinese President Xi Jinping could meet his U.S. counterpart Donald Trump. "Nevertheless, the tail risk for RMB to eventually break 7 is getting higher. For this week, markets will closely watch out for the daily RMB fixings to gauge whether there is any possible shift," he said. A second trader at a Chinese bank said the widening gap between onshore and offshore yuan could make authorities uncomfortable, prompting them to take further steps to curb yuan losses offshore. The onshore spot rate is allowed to trade with a range 2 percent above or below the official fixing on any given day, but there is no such restriction on offshore yuan. The PBOC said last month that it will issue more yuan-denominated bills in Hong Kong in the near future, in a move analysts said was designed to tighten offshore liquidity to stabilize the weakening currency. But the central bank has not yet announced the details for the auction. Trade and FX reserve data had little impact on the yuan in the morning, traders said. Still, the biggest import drop in nearly three years reinforced expectations that Beijing will need to roll out more economic stimulus measures.
In global markets, the dollar index rose to 96.774 as of midday from the previous close of 96.544.
The yuan market at 0405 GMT:
Item Current Previous ChangePBOC midpoint 6.8925 6.8945 0.03%Spot yuan 6.9336 6.9118 -0.31%Divergence from 0.60%
Spot change YTD -0.87%Spot change since 2005 19.37%
Item Current Previous ChangeThomson 92.84 92.97 -0.1
Reuters/HKEX CNH index
Dollar index 96.774 96.544 0.2
*Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The People's Bank of China (PBOC) allows the exchange rate to rise or fall 2 percent from official midpoint rate it sets each morning.
OFFSHORE CNH MARKET
Instrument Current Difference
Offshore spot yuan 6.9522 -0.27%*Offshore 6.9958 -1.48%
*Premium for offshore spot over onshore
**Figure reflects difference from PBOC's official midpoint, since non-deliverable forwards are settled against the midpoint. .
(Reporting by Winni Zhou and John Ruwitch; Editing by Kim Coghill)