American Dollar Bumps Up at Pro-Protest Law | Finance Brokerage
USD/CNY gained 0.29% to 7.1017 when the US passed legislation to show American support for pro-democracy protesters in Hong Kong.
The US considered the Hong Kong Human Rights and Democracy Act as “important reminders of US support for human rights.”
The act would filter out trading with Chinese authorities who don’t respect human rights and the rule of law.
America also plans to bar military exports and crowd-controls items like teargas.
Once the US passes this law, Hong Kong will condemn Beijing’s interference with the laws prior. The bill also supports the right of the city’s residents to protest.
The American Dollar index also went higher against six other currencies at 98.04.
Meanwhile, the GBP/USD pair dropped 0.2% to 2.755 after UK negotiator Barnier announced a possible Brexit agreement. The UK currency lost 0.2% against the euro with 86.25 pence per euro.
The Renminbi vs. Human Rights
The former British colony accused “external forces” of fueling the Hong Kong protests, which affected the Renminbi.
Chief Executive Carrie Lam blamed the Hong Kong protesters for China’s worst economic performance since 2009. She claimed the protesters’ 400+ demonstrations “posed an unprecedented challenge” to the Chinese economy.
Furthermore, she said the rioters spread chaos in Hong Kong and disrupt people’s daily lives.
Lam acknowledges China’s frustrations of people who couldn’t own properties because of soaring prices.
She attempted to encourage the Hongkongers to rely on its core values and its prestigious status as a financial center.
But she also said the protests damaged Hong Kong’s image. The region would have to intensify promotion efforts to restore the world’s faith.
The Chinese also said the problem wasn’t in human rights and democracy. Instead, it was of stopping violence, reinstating order, and upholding the rule of law.
China also warned the US they would take “strong measures” to counter the American bill.
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