USD/CNY regains 6.90 as USD strengthens ahead of FOMC

The Chinese currency resumed its decline versus its American counterpart on Monday, after a minor-recovery staged last Friday, as the greenback advanced sharply against its six major peers in anticipation that the Fed will hike rates by 25bps this Thursday.

A trader at a big Chinese bank in Beijing, "The yuan faces depreciation pressure as the US dollar strengthened ahead of the expected rate hike this week. The yuan faces depreciation pressure as the US dollar strengthened ahead of the expected rate hike this week."

The Yuan weakened per dollar also as the Chinese central bank, PBOC, lowered the Yuan fix 6.9086, 114 basis points lower than Friday’s fix of 6.8972.

Meanwhile, the USD/CNY pair almost unchanged at 6.9077 at mid-day, flirting with daily highs of 6.9085.