Yuan Forwards Climb as Producer Prices Signal Economic Recovery
- Data indicating an improvement, Scotiabank strategist says
- China's currency reserves rose in March as yuan rallied
This article is for subscribers only.
Forward contracts on the yuan strengthened for a second day as the first monthly increase in China’s factory gate prices since 2013 added to signs of an improving economy.
The producer price index accelerated 0.5 percent in March versus the previous month, and narrowed its decline on a yearly basis, according to data released on Monday. Consumer inflation rose 2.3 percent from a year earlier, matching February’s pace. The figures come after data last week showed a surprise increase in the nation’s foreign-exchange reserves as the currency erased its declines for the year and depreciation expectations eased.