Chinese Yuan strengthened

Since the start of this year, Chinese Yuan (CNY) had strengthened against US dollar (USD) and Singapore dollar (SGD). The jump was more pronounced since two weeks ago, especially for SGD against CNY.

  1 Jan 2013 7 May 2013 24 May 2013
USD/CNY 6.2306 6.1666 (-1.02%) 6.1240 (- 0.69%)
SGD/CNY 5.1041 5.0093 (- 1.85%) 4.8496 (- 3.18%)

The currency rates are quoted as 1 USD = X CNY and 1 SGD = X CNY. USD and SGD weakened against CNY, ie CNY strengthened.

US has been for years saying that Chinese Yuan is undervalued in order to boost China exports to US. China has since 2005 allowed for appreciation of CNY overtime to current level.

In case of Singapore dollar, CNY appreciated even more when compared with USD/CNY. Singapore dollar weakened significantly in past two week by 3.18%. If you held on to your CNY investments, that CNY investments can be converted to higher Singapore dollar.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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