ForexLive Asia-Pacific FX news wrap: People’s Bank of China leave prime rates unchanged

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The
focus for the session was on the People’s Bank of China decision on
its Loan Prime Rates (LPRs). Last week the PBoC left its Medium-term
Lending Facility (MLF) rate unchanged, an indication that LPRs would
also be untouched. And that proved to be the case:</p><p>3.45%
for the one year, this was last cut in August 2023 from 3.55%</p><p>4.20%
for the five year, this was last cut in June 2023 from 4.30%</p><p>for
completeness, the MLF rate is currently 2.5%, this was last cut in
August 2023 from 2.65%</p><p>In
response to the announcement USD/CNH
dipped to hit 7.1964, the highest for the offshore yuan in nearly 7
days, but it soon retraced to touch around 7.2080.</p><p>In
US political news Ron DeSantis quit the race for his party’s
nomination to run for President. This leaves only Nikki Haley and
Trump in the running, with Haley an underdog.
</p><p>Data
and news flow was otherwise absent.
</p><p>The
US dollar lost ground against much of major FX on the session.
USD/JPY led the way, down to under 147.80 at one stage. Ranges across
major FX were small only.
</p><p>China
mainland and Hong Kong stocks traded heavily again.
</p>

This article was written by Eamonn Sheridan at www.forexlive.com.