Yuan Drops Most in Three Months as China Widens Band

16/04/2012 12:43 AST

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.”

For more on this Click Here

Forex News
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | News Archive
Most Viewed Companies
Ticker Price Volume
SAGRINSURANCE 31.41 724,533
ALMARAI 79.2 271,141
SABIC 89.82 6,416,421
STC 67.66 440,643
EEC 31.49 1,418,989
RIBL 12.54 519,519
Recent News

Bahrain tops Arab world in developing ICT sector
Bahrain has been awarded the top rank in the Arab world for information and communications technology (ICT) development by the International Telecommunications Union (ITU).

The kingdom ra

Opportunities focus of Zain conference
Demand for mobility, broadband, virtualisation, cloud-based services and enhanced customer experience are drivers for transformation in information and communications technology, experts have said.<

BisB shares offer fully subscribed
A rights offer of shares by Bahrain Islamic Bank (BisB) that ended on Sunday was fully subscribed, the bank has announced.

Under a capital increase plan, the bank offered 170,940,171 ordin

GIB’s ratings affirmed by Moody’s and Fitch
International credit rating agencies Moody’s and Fitch have affirmed Bahrain-based Gulf International Bank’s (GIB) credit ratings.

Fitch affirmed GIB’s long-term credit rating at ‘A’ wi

Gender equality ‘could add $13trn to global economy’
Gender equality could add $13 trillion to the global economy, according to Deutsche Bank Group global head of diversity and inclusion Guelabatin Sun.

She said that studies have shown that

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend


Looking ahead, what change you are more likely to make in investing in your domestic stock market?