As China slowed down the yuan's depreciation, the People's Bank of China injected 870 billion yuan ($122 billion) into the banking system and attempted to provide liquidity to the market.
In the eurozone, Germany saw a 10% rise in consumer prices in September and the Netherlands soared 17%, the highest since 1951 when the U.S. Umbrella Marshall Plan began after the end of World War II.
"China has made more than nine attempts to inject short-term liquidity this week, expressing its will to avoid cash pressure ahead of the Communist Party's two leadership summits," Reuters reported. ), put 868 billion yuan ($122 billion) into the banking system, the highest figure since January 2019.”
The Wall Street Journal reported on the 29th that China is "trying to slow the currency decline rather than stopping it, and is struggling to paddle against the strong currents in the global economy that are pushing the dollar higher," the Wall Street Journal reported on the 29th.
Regarding the People's Bank of China's "speed control" strategy, the WSJ described it as "an awkward policy compromise between managing the value of the yuan and supporting economic growth through bureaucracy in the world's second largest economy."
The yuan has fallen more than 10% against the dollar since the beginning of the year, breaking the 7.2 yuan level against the dollar on the 28th, the highest level since 2010.
On this day, the People's Bank of China intervened, saying, "Do not bet on the rise or fall of the yuan exchange rate. If you bet for a long time, you will surely lose."
The WSJ observed the People's Bank of China's strategy as "strengthening restrictions on capital entering and leaving China or forcing exporters to convert their foreign currency earnings into RMB."
Germany's Federal Statistical Office said on the 29th that the consumer price index (CPI) rose by 10% in September compared to the same period last year. Inflation in Germany was the highest since 1951, and it rose further from the inflation rate of 7.9% in August.
The Netherlands Statistical Office (CBS) said on the 30th that energy prices rose 17.1% in September.
Reuters reported that high inflation in the Netherlands rose 114% in September and food prices rose 10.5% in energy prices in the eurozone's fifth-largest economy.
In the Netherlands, consumer price inflation in August was 13.7%.
The U.S. Department of Commerce announced on the 30th that the personal consumption expenditure (PCE) price index rose 6.2% in August from the same month a year ago and 0.3% in the previous month.
The PCE, a reference indicator for the US Federal Reserve's monetary policy, predicted an additional rate hike as energy prices plunged 5.5% due to falling international oil prices, but food prices rose 0.8%.
PCE in August surged 24.7% for energy and 12.4% for food from a year earlier.
The Consumer Price Index (CPI) for August, announced earlier by the Ministry of Labor, rose 8.3% from the same month a year earlier.
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