The Chinese yuan inched up on Thursday in Asia after China confirmed that it will resume trade talks with the U.S. in October.
The USD/CNY pair dropped 0.1% to 7.1308 by 12:10 AM ET (04:10 GMT). China will implement both broad and targeted cuts in the reserve requirement ratio (RRR) for banks «in a timely manner,» China’s cabinet said in a meeting on Wednesday.
A Reuters poll of nearly 60 strategists suggested that China will continue to allow the yuan to weaken further against the U.S. dollar amid an ongoing Sino-U.S. trade war.
On the Sino-U.S. trade front, China’s Ministry of Commerce confirmed that officials from Beijing and Washington held a phone call earlier in the day and agreed to resume trade talks in early October.
CNBC noted that Liu He, China’s top negotiator on trade, spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
Citing a statement, the report said a U.S. Trade Representative spokesperson said the phone call took place but did not confirm the October meeting.
The USD/JPY pair gained 0.3% to 106.64.
The safe-haven yen continued its downward momentum as global stock markets recovered amid reports of positive Sino-U.S. trade developments. Hong Kong leader Carrie Lam’s decision to fully withdraw a highly controversial extradition bill was also cited as tailwind for equities.
The AUD/USD pair and the NZD/USD pair both traded 0.2% higher.
The GBP/USD pair dropped 0.1% to 1.2240. Hopes that a no-deal Brexit could be avoided supported the pound this week as U.K. Prime Minister Boris Johnson suffered another parliamentary defeat.
The British parliament voted on Wednesday to prevent Johnson from taking Britain out of the European Union without a deal on Oct. 31
