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0506 GMT - Chinese companies may consider boosting non-USD FX holdings to counter risks of yuan weakness, Mizuho Securities Asia's Ken Cheung says in an email. Without the PBOC's grip on EUR/CNY fixings similar to USD/CNY fixings, spot EUR/CNY has extended its rally to an 11-year high, the director of FX Strategy says. Since market participants don't gauge yuan sentiment by referring to EUR/CNY fixings, China's central bank could allow EUR to strengthen further versus CNY to push the yuan lower against a basket of currencies, Cheung says. EUR has the second-largest weight in the CFETS RMB Index at 17.9%, following USD's 18.9% weight, Cheung notes. EUR/CNY is 0.4% higher at 8.4289. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
April 22, 2025 01:06 ET (05:06 GMT)
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