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
YAMAMAHSTEEL 40.2 2,887,408
SABIC 81.5 1,424,323
SIPCHEM 13.95 91,441
SPIMACO 37 25,626
DARALARKAN 5.2 3,668,462
PETRORABIGH 11.9 571,820
RIBL 11.15 114,464
Recent News

Dallah Health announces signing of contract costing SAR 334 million
Dallah Healthcare Holding Company announces the signing of a contract for mechanical, electrical work and plumbing of phase one for Dallah Hospital, Namar, southwest of Riyadh on 24/05/2015G. (corres

Saudi Cement announces cash dividends for 1st Half 2016
The Board of Directors of Saudi Cement Company has resolved during its meeting held on 24/05/2016 (17/08/1437), to distribute interim dividends to the shareholders for the period first half of 2016 a

Batelco quits Malta GO stake deal talks
Bahrain Telecommunications Co (Batelco) is no longer in talks to buy Maltese telecoms company GO, the Bahraini firm said on Tuesday.

Last week, Batelco announced it had submitted a bid for

NBK - Egypt reports $20.96m Q1 profit
National Bank of Kuwait-Egypt (NBK-E) reported net profits of EGP186.6 million ($20.96 million) for the first quarter of 2016 compared with EGP126.3 million for the same period in 2015, growing at 47

Dubai Holding unveils $272m waterfront development
Dubai Holding, a leading investment holding company, has announced the launch of its new waterfront destination, 'Marasi Business Bay,' to be developed along the creek within Business Bay destination

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?