Corporate foreign exchange news

Published by Jamie JemmesonForex brokers were buying Australian dollars and other high-yield currencies this morning (June 21st) after the People's Bank of China confirmed over the weekend that it would revise its currency strategy.The yuan, also known as the renminbi, has been pegged to the US dollar throughout the financial crisis and many critics have called for China to be labelled a currency manipulator.There has been vociferous opposition to China's yuan policy on both floors of the Houses of Congress, and President Obama has also expressed opposition to the perceived discount at which the yuan trades.Following the announcement, forex brokers have tested the central bank's willingness to allow the currency to appreciate, and it is currently trading at a 20-month high.The announcement also encouraged traders to adjust their forex risk management strategy to take on higher-yield currencies such as the Australian dollar and the beleaguered euro. As attitudes to risk grew more relaxed, hedge currencies such as the US dollar and the yen were down.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site