Yuan Chips Away at U.S. Dominance of FX Market
- Asian currency increasingly driving GBP, AUD, NZD, CAD: HSBC
- Renminbi may become more important as China’s markets open up
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The yuan is curbing the dollar’s dominance in driving price action among Group-of-10 currencies as Covid-19 reshapes global financial markets.
That’s the view of Dominic Bunning, HSBC Holdings Plc’s senior foreign-exchange strategist, who says the correlation between the offshore renminbi and many G-10 currencies has strengthened since the onset of the pandemic. The Chinese currency is increasingly influencing weekly price changes in the pound and commodity-linked currencies such as the Australian, New Zealand and Canadian dollars, he said.