USD/CNY slips on China NBS comments, weaker DXY

The Chinese currency staged a solid rebound against the US dollar on Tuesday, retreating sharply from just below 6.92 barrier, in wake of yesterday’s sell-off in the greenback across the board on profit-taking ahead of the Fed verdict.

While latest upbeat remarks from China’s NBS spokesman Mao Shengyong, noting that  the recent USD/CNY strength is largely on the back of Fed rate hike prospects this week, but overall the Yuan remains stable against a basket of currencies.

The Yuan inched higher per dollar also as the Chinese central bank, PBOC, strengthened the Yuan fix at 6.8934, 152 basis points higher than Monday’s fix of 6.9086.

Meanwhile, the USD/CNY pair traded -0.07% lower at 6.9018 at mid-day, having posted a day’s high at 6.9069 and daily lows at 6.8999.