UK Currency Falls with Yuan
PM Johnson’s October 31 Brexit deadline approaches. The UK currency falls as his promise looms over the European Union.
Investors await Britan and EU’s latest development before the summit this weekend. Their hesitance leads GBP to fall 0.24% to $1.2757 from a five-month of $1.2800.
British approval raised risk-appetite as Johnson and the EU showed signs of approaching an agreement.
Forex strategists said it was still unclear if they can stick with the exit deadline. Investors lightened their positions in the market in response.
Traders fear the UK currency turmoil at the threat of Brexit’s planned custom tariffs and safety inspections.
Over in China, the yuan fell as Beijing grilled the US of legislating laws supporting the recent Hong Kong protests. Renminbi slumped around 0.22% to 7.0973 per dollar.
Predictions claim further signs of support from the US will stretch the US-China trade war.
American Legislation Pushes Yuan Down
The Hong Kong Human Rights and Democracy Act would end the Chinese city’s special trading status with the Americans. Beijing was not happy.
China’s foreign ministry spokesman Geng Shuang threatened the US, saying the act can harm their countries’ relationship. Hong Kong’s government insisted foreign legislatures should not interfere in any form.
US’s alternative, the Protect Hong Kong Act, would bar commercial exports of military and crowd-control items like teargas.
Another measure will condemn Beijing’s interference in affairs and supported the right of the city’s residents to protest.
House Speaker Nancy Pelosi labels the bills as “important reminders of US support for human rights.” She said if America keeps silent because of commercial interests, the country will lose its moral authority on human rights.
The yuan fell 0.22% to 7.0973 per dollar on the onshore market. Offshore, the yuan was off more than 0.2% to 7.1028 against the dollar.
The dollar index rose slightly by 0.04% to 98.323.
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