The yuan fell by the most in a week against the dollar as China’s central bank doubled the daily trading band, reflecting declines in emerging-market currencies.
The People’s Bank of China now allows 1 percent moves from a daily fixing, after keeping the limit at 0.5 percent since May 2007. The Dollar Index, tracking the greenback against currencies of trading partners, climbed 0.2 percent, after a 0.8 percent jump on April 13, amid concern Europe’s debt crisis is worsening. One-month implied volatility for the yuan, a measure of exchange-rate swings used to price options, jumped 20 basis points to 2.5 percent, the highest since March 14.
“The yuan is weaker as investors are again worried about Europe and a bit on China’s growth,” said Tommy Ong, the Hong Kong-based senior vice president of treasury and markets at DBS Bank (Hong Kong). “It’s an opportune time for China to widen the band when appreciation expectations aren’t so strong. That won’t induce any massive speculative bets on its currency.”
Oil prices march higher
Oil prices extended gains on Wednesday despite an increase in US crude inventories, lifted by Libyan supply disruptions and expectations of output cut being extended by the Organization of the Petrol
Saudi top 20 brands valued at $37 billion
The first BrandZ brand valuation ranking of Saudi Arabian brands by WPP and global research specialists Kantar Millward Brown, in partnership with Prince Mohammad bin Salman College of Business and E
BSF signs deal with Saudi desalination giant
State-owned Saline Water Conservation Corporation (SWCC) has awarded a financial advisory mandate to Banque Saudi Fransi (BSF) for two greenfield projects.
Patrice Couvegnes, BSF managing director,