Yuan Drops Most in Three Months as China Widens Band


16/04/2012 12:43 AST  Bloomberg

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
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | News Archive

JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG
Most Viewed Companies
Ticker Price Volume
EMAAR 9.77 9,103,558
BAHRI 35.46 4,000,812
RIBL 19.1 5,134,816
EEC 88.53 2,668,195
SAPTCO 38.52 625,023
ALKHODARI 50.14 1,489,883
SABIC 128.58 6,335,372
Recent News

Mideast funds bullish on Kingdom, bearish on UAE
Middle East funds are heavily bullish toward Saudi Arabian stocks after news the market will open to direct foreign investment, while they are bearish on the United Arab Emirates because of concern

MENA world’s fastest growing wellness tourism market
The Middle East/North Africa ( region is fastest growing wellness tourism market in world, at 16 percent annually, –the Global Wellness Tourism Congress (GWTC), a division of the Global Wellness Inst

UAE and Egypt indices rise on earnings
Stock markets in the United Arab Emirates and Egypt rose on Thursday on the back of strong second-quarter earnings at banks and expectations for similar performances by real estate developers.
<

Bahrain remains investor-friendly
Bahrain's business environment continues to attract inward investment although there is increasing competition within the region, according to a new report.

The Economist Intelligence Unit

Property developer DAMAC looks to list shares on Dubai bourse
Dubai luxury property developer DAMAC is offering investors the option of converting its Global Depositary Receipts (GDRs), listed on the London bourse, into ordinary shares that would be listed on D

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

Poll

Which of the following do you think is the best long-term investment?