Forex

By Lu Jianxin and Jason Subler SHANGHAI, Nov 29 (Reuters) - A set of data published by the People's Bank of China shows capital inflows jumped in October, reinforcing the government's rationale for a slew of recent monetary tightening steps. The central bank and Chinese institutions spent 519 billion yuan ($78 billion) to absorb foreign exchange flowing into China last month, according to Reuters calculations based on the latest "Position for Forex Purchases" data published over the weekend. That was about double the totals of 290 billion yuan in September and 243 billion yuan in August. October's "Position for Forex Purchases", a key measure reflecting capital inflows into China, was the third largest since the PBOC started to publish the data in the late 1990s, It was just shy of a record 654 billion yuan hit in January 2008 and 525 billion in April 2008, Reuters calculations showed. But deputy PBOC governor Ma Delun played down assumptions that the data would translate into another surge in...

Nov 15 - (IFR) - USD/CNY was fixed in Asia on Friday at 6.6239, down slightly from Thursdays 6.6242 fix. The OTC market traded a broad 6.6258-6.6555 range; last at 6.6370. The USD/CNH last at 6.6150/00 as it keeps pace with the USD/CNY moves. The 1-yr NDF last at 6.4670/00. The Shanghai Composite closed down 5.2%. Another China tightening story plus capital controls talk in South Korea set off a nasty round of risk selling across the board in Asia. The SSEC recorded its biggest percentage loss in 14 months as big cap and resource stocks were dumped en masse. The NDF curve was shunted hard to the right as a consequence. On Friday night the 1-yr NDF traded a 6.4550-6.4600 range; the 1-yr was last at 6.4560/10.

The greenback came back after the better than estimated US confidence data which showed improvement to 50.2 in October from the revised 48.6 while analysts expected 49.9. However, the dollar remains under pressure before next week's Fed meeting which is expected to witness a second round stimulus to give another boost to the economy that started to show sluggishness. The dollar index rebounded from a low of 77.03 to a high of 77.68 where it is doing attempts to breach resistance at that level. On the other hand, the euro slipped after Mohamed A. El-Erian, Pacific Investment Management Co. Chief Executive Officer, said Greece will fall into default over the coming three years as the announced austerity measures are not sufficient to reduce the budget deficit that reached 13.6% of GDP last year. The announcement raised concerns that despite the improvement seen recently debt woes will cause recovery to falter. Concerning the euro-dollar pair, it is plummeted to a low of 1.3838 below 1.40 key...