The Chinese yuan gained after FTSE Russell announced it will add Chinese government bonds to its flagship World Government Bond Index starting in 2021. The renminbi traded at 6.871 per dollar, up slightly on the day. It has gained around 5% from its lows in May.
US House Democrats have started drafting a stimulus proposal of roughly $2.4 trillion into negotiations with the Senate Republicans. Economists have expressed doubts over whether additional funding would be seen this year.
Yuan’s rise is not expected to go far as two strong resistance levels lie ahead for when prices test the 40EMA.
