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
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | News Archive
Most Viewed Companies
Ticker Price Volume
SABIC 82.78 11,069,777
SAGRINSURANCE 21.14 650,331
SPIMACO 36.51 289,359
RIBL 14.87 1,835,693
EMAAR 6.7 16,810,166
STC 60.8 1,464,031
SECO 16.58 2,584,681
Recent News

Feasibility study into copper-gold project begins
Australian-based minerals exploration and mining development company Alara Resources Limited has announced the formal launch of a study into the feasibility of establishing an 800,000 tonnes per ann

Oman, Gulf bourses recover on rally in oil market
Oman stock market, along with other Gulf bourses, staged a smart rally after crude oil prices had the biggest weekly jump in more than six years. The Muscat Securities Market recovered 1.51 per cent

Sultanate's sovereign wealth fund, Oman Oil join hands
State General Reserve Fund (SGRF), Oman’s sovereign wealth fund, and Oman Oil Company (OOC), the government’s investment arm in the energy sector, have signed a cooperation agreement to build a strat

Oman’s Islamic banking could achieve 17% of total banking asset in 5 y
Islamic banking in Oman could achieve around 15 to 17 per cent of the total banking asset within the next five years in normal market conditions with recovery and stability in the oil market, says a

Salalah Mills plans to build OMR7.5m-flour mill
Salalah Mills Company is planning to build a new flour mill with a production capacity of 600 tonnes per day in a move to develop the company as the biggest flour mill in Oman and one of the largest

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?