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

Bloomberg
Forex News
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | News Archive
Most Viewed Companies
Ticker Price Volume
RIBL 11.1 28,097
GFH 0.24
SABIC 83.25 693,868
WAFRAH 27.9 141,491
SIPCHEM 14.35 59,697
TAWUNIYA 84 1,444
ALMARAI 55.25 20,512
Recent News

Central Bank of Bahrain bonds oversubscribed
The latest issue of five-year government development bonds has received subscription to the tune of 113 per cent, the Central Bank of Bahrain (CBB) announced yesterday.

Subscriptions worth

Goods and services set to cost more with VAT rollout
Consumers and businesses in Bahrain need to gear up for the introduction of Valued Added Tax (VAT) from January 1, 2018 which is set to make consumption of goods and services more expensive.

First independent Chinese refiner trades DME Oman
Shandong Chambroad Petrochemicals Co, has become the first independent Chinese refiner to trade Oman crude oil futures on the DME, the leading east of Suez energy exchange. The Chinese government al

National Bank of Oman to offer mortgages on Bausher Heights villas
National Bank of Oman (NBO) announced on Wednesday that it has entered into an agreement to offer mortgages on 16 villas currently being built in the Bausher Heights development in Muscat.

Major initiatives to make a central fisheries hub for the region
Oman is taking several major steps to develop fisheries sector to make the country a hub for the region, said the Minister for Agriculture and Fisheries.

“We are trying to build Oman as a

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

Poll

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