Data from the China Foreign Exchange Trade System (CFETS) showed that the US dollar dropped to 6.78 against the Chinese yuan on September 15, the lowest point since June 21, 2019.
The yuan suffered depreciation since early 2020 due to the Covid-19 pandemic until June when the virus was put under control and the government started economic recovery efforts. According to China’s National Bureau of Statistics, China’s PMI (Purchasing Managers’ Index) in manufacturing rose to 51.5 percent in September, 0.5 percent higher than that of August, and that in non-manufacturing sectors increased by 0.7 percent to 55.9.
In contrast, the US dollar suffered depreciation in recent months as the coronavirus continues to spread across the country.
However, given the rising uncertainties in the global economy amid a second wave of Covid-19, analysts cannot say how long the appreciation of the yuan will last.
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