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.”
NBAD Wins 2 Banker Middle East Industry Awards
National Bank of Abu Dhabi (NBAD), the safest bank in the Emerging Markets and the Middle East, has won two Banker Middle East Industry Awards 2015, organised by the Dubai-based financial media compa
Abu Dhabi to inject RM3.6bil lifeline
Debt-laden 1Malaysia Development Bhd has received a lifeline of US$1bil (RM3.6bil) from Abu Dhabi’s energy investment arm to repay its loan to a syndicate of international banks.