The onshore yuan closed at 6.64 yuan to the US dollar. REUTERSThe onshore yuan rose by more than 700 basis points and closed at 6.64 yuan to the US dollar, rising 738 basis points, a 28-month high. China Everbright Bank HK Branch's co-head treasury Ngan Kim Man said the market generally expects Democratic contender Joe Biden to win the US presidential election, but with the Senate is still controlled by the Republicans, he may face difficulties when introducing fiscal policies in the future. He believes that the market will focus on the monetary policy introduced by the Federal Reserve in the future and the yuan will gradually rise to 6.6 to the US dollar, driven by the greenback's depreciation of and improvement in China's economic fundamentals. Ngan also said that the market cannot rule out the introduction of short-term measures by the People's Bank of China to temper the speed of the yuan's appreciation, but factors such as China's economic recovery and further possible quantitative easing in the United States point to a stronger yuan.

Source: The Standard November 05, 2020 10:52 UTC