Yuan touches six-year low against dol­lar

The Sun (Malaysia) - - SUNBIZ -

SHANG­HAI: China’s yuan touched a six-year low against the dol­lar be­fore par­tially re­cov­er­ing yes­ter­day, as large state-owned banks sold dol­lars in an ap­par­ent ef­fort to slow a rapid de­cline in the cur­rency, traders said.

Three traders said big sta­te­owned banks were sell­ing dol­lars in the do­mes­tic for­eign ex­change mar­ket to help sta­bilise the yuan in morn­ing trade.

Some traders sus­pect that sta­te­owned banks oc­ca­sion­ally sell dol­lars on be­half of the cen­tral bank to keep the yuan from slid­ing too quickly, while oth­ers be­lieve big banks trade on their own be­half.

The yuan has en­coun­tered re­newed pres­sure over the past two weeks as the dol­lar strength­ened, buoyed by ex­pec­ta­tions that the US Fed­eral Re­serve would raise in­ter­est rates in De­cem­ber.

The yuan set­tled at 6.7718 per dol­lar at 4.30pm, hit­ting a low of 6.7770 ear­lier in the ses­sion, com­pared with Fri­day’s of­fi­cial close of 6.7599. The yuan’s late ses­sion close on Fri­day stood at 6.7655.

China takes the mar­ket clos­ing price at 4.30pm into con­sid­er­a­tion when it fixes the of­fi­cial guid­ance rate, in an ef­fort to let mar­ket forces play a big­ger role in de­ter­min­ing the yuan’s value. – Reuters

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.