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Renminbi rallies following positive Trump tweet

The Chinese currency posted the highest one-day gain since August on Thursday after the US president tweeted of his “long and very good conversation” with Xi Jinping, the Financial Times reports.

The onshore renminbi closed 0.8% higher at Rmb 6.9188 during Thursday trading, making for the largest one-day rise in over two months. The offshore exchange rate saw a similar increase to end Rmb 6.9196 against the dollar.

“We talked about many subjects, with a heavy emphasis on trade,” Trump tweeted. “Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina. Also had good discussion on North Korea!”

The yuan is now trading at last week’s level, but Thursday’s gains are a small rebound from what has been a dismal year for the Chinese currency. The renminbi lost around 6.7% against the dollar during the first ten months of the year, dropping 1.6% in October alone.

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