China’s Foreign Exchange Reserves Hit the Lowest Since April

According to Thursday’s official data, China’s foreign exchange reserves declined almost 1% in September from the previous month. Remarkably, reserve hit their lowest level since April as the U.S. dollar increased ground versus a basket of other major currencies.

Notably, China’s foreign exchange reserves are the biggest in the world. The data from the central bank’s State Administration of Foreign Exchange showed that it stood at $3.201 trillion at the end of the previous month.

It came below the $3.225 trillion forecast in a Reuters poll of analysts. Moreover, it dipped from $3.232 trillion at the end of August.

Additionally, it’s important to note that the $31.5 billion month-on-month slump was the steepest since March.

The U.S. dollar index soared 1.7% in September, making the value of assets in other major currencies lower in dollar terms. The index was at 94.278, keeping within sight of last week’s one-year high of 94.504.

Meanwhile, the Asian giant held 62.64 million fine troy ounces of gold at the end of September, intact from the previous month.

But gold reserves value dipped to $109.18 billion from $113.69 billion at the end of August as gold prices fell.

The U.S. dollar advanced 0.26% to 111.91 against the safe-haven Japanese yen. It hit 111.93, the highest level this month, supported by higher Treasury yields. Additionally, the benchmark 10-year note reached 1.6010% for the first time since June 4.

The euro wavered around $1.1550 after falling on Wednesday to a 14-month low of $1.1529.

The Fed has announced it is likely to start reducing its monthly bond purchases as soon as November. The Federal Reserve will likely follow up with interest rate hikes potentially next year.

Remarkably, non-farm payrolls data, which is due on Friday, is anticipated to show continued improvement in the labor market. Reuters analysts expect for 500,000 jobs added in September. Meanwhile, estimates ranged from 250,000 to 700,000.

The British pound dropped 0.1% to settle at $1.3600, holding on to most of an 0.26% increase from the previous session. Earlier, new Bank of England (BoE) Chief Economist Huw Pill announced inflation pressures were proving stickier than expected. It reinforced anticipations for a rate hike by February.

Furthermore, the risk-sensitive Australian dollar dropped 0.22% to $0.7297, following a 0.55% rise on Thursday. It earlier hit $0.7324 for a second day running, the highest level since September 16.

Support Platform Spread Trading Instrument

Subscribe to our newsletter

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.

What's your reaction?

In Love
Not Sure

You may also like

More in:News

Leave a reply

Your email address will not be published. Required fields are marked *

Next Article:

0 %