ForexLive Asia-Pacific FX news wrap: People’s Bank of China leave prime rates unchanged |


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The
focus for the session was on the People’s Bank of China decision on
its Loan Prime Rates (LPRs). Last week the PBoC left its Medium-term
Lending Facility (MLF) rate unchanged, an indication that LPRs would
also be untouched. And that proved to be the case:

3.45%
for the one year, this was last cut in August 2023 from 3.55%

4.20%
for the five year, this was last cut in June 2023 from 4.30%

for
completeness, the MLF rate is currently 2.5%, this was last cut in
August 2023 from 2.65%

In
response to the announcement USD/CNH
dipped to hit 7.1964, the highest for the offshore yuan in nearly 7
days, but it soon retraced to touch around 7.2080.

In
US political news Ron DeSantis quit the race for his party’s
nomination to run for President. This leaves only Nikki Haley and
Trump in the running, with Haley an underdog.

Data
and news flow was otherwise absent.

The
US dollar lost ground against much of major FX on the session.
USD/JPY led the way, down to under 147.80 at one stage. Ranges across
major FX were small only.

China
mainland and Hong Kong stocks traded heavily again.



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