Yuan jumps on China’s moves to curb its currency’s decline

The central bank and foreign exchange regulators in China said they had raised the cross-border macro-prudential adjustment standard for companies and financial institutions, a move aimed at making it easier for local companies to collect funds from markets abroad.

This comes at a time when the Chinese yuan is facing pressure as the country’s economic recovery falters, allowing more capital inflows would ease pressure on the currency.

Yuan jumped in the internal and external markets after this step, and rose in both cases by more than 0.5% against the dollar.

The currency recorded abroad 7.1901 per dollar, and at home it exceeded 7.18 per dollar.

Australian dollar rose on Thursday after the country’s jobs data beat expectations, while the yuan rose after China moved to curb its currency’s decline by loosening a rule for cross-border financing.

The New Zealand dollar rose 0.57% to $0.6299

The pound sterling compensated for some of the heavy losses incurred after a sharp decline in the previous session following inflation data in Britain, which came in below market expectations.

The pound sterling rose in the latest transactions by 0.15 percent to $ 1.2958, after falling by more than 0.7 percent on Wednesday.

The euro rose 0.24% to $1.1227, as investors await the European Central Bank’s policy meeting next week, seeking more clarity on interest rate expectations.

The dollar index settled in the latest reading at 100.03, regaining some of its gains after declining last week by more than 2% in reaction to US inflation data, which came less than expected.

The Japanese yen rose 0.3% to 139.23 per dollar.