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
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 146.8 84,219
BKMB 0.38 1,980,276
SIPCHEM 17.19 1,768,707
SABIC 96.61 3,459,123
JULPHAR 2.27 43,877
NBAD 10.45 1,302,886
DIB 5.5 4,143,030
Recent News

Oil prices march higher
Oil prices extended gains on Wednesday despite an increase in US crude inventories, lifted by Libyan supply disruptions and expectations of output cut being extended by the Organization of the Petrol

Gulf Investment Corp acquires 35% stake in Sudair Pharmaceuticals
Gulf Investment Corporation which is based in Kuwait announced that it has successfully completed acquisition of a significant minority stake in “Sudair Pharmaceuticals Company” – the owner and the d

Saudi top 20 brands valued at $37 billion
The first BrandZ brand valuation ranking of Saudi Arabian brands by WPP and global research specialists Kantar Millward Brown, in partnership with Prince Mohammad bin Salman College of Business and E

National resilience program a ‘strategic imperative’ for GCC
The growing number of natural and man-made disasters around the world – from earthquakes and floods to recent cyber attacks against organizations – highlight the need for GCC countries to adopt a Nat

BSF signs deal with Saudi desalination giant
State-owned Saline Water Conservation Corporation (SWCC) has awarded a financial advisory mandate to Banque Saudi Fransi (BSF) for two greenfield projects. Patrice Couvegnes, BSF managing director,

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?