Forexlive Americas FX news wrap: 'Forceful' message from Powell sends dollar soaring

Fed Chair Powell sent the US dollar much higher again on Friday. (see link above)

Its following through with more strength in Monday morning trade in Asia.

The offshore yuan has weakened against the USD, along with other currencies of course.

This creates questions for the People's Bank of China if their intention is to ease monetary policy further. Inflation rates in China (those officially reported at least) allow for further easing. But, doing so will be another factor contributing to the weak yuan and is likely to encourage more capital flight out of China. The PBOC is likely to be eyeing tighter capital controls.

usdcnh 29 August 2022

ps. the USD/CNY reference rate setting is along soon (around 0115 GMT). The expected rate is 6.8799.