China fixes yuan at over five-year low

AFP, SHANGHAI:  China’s central bank yesterday set the value of the yuan currency at a more than five-year low against the US dollar, according to the national foreign exchange market, in a pattern of weakness in anticipation of higher US interest rates.
The People’s Bank of China (PBoC) put the yuan—also known as the renminbi (RMB) -- at 6.5784 to $1.0, down 0.45 per cent from its fix on Friday, according to data from the China Foreign Exchange Trade System.
The level was the lowest level since February 2011.
China only allows the yuan to rise or fall two per cent on either side of the daily fix, one of the ways it maintains control over the currency.
At 4:30 pm (0830 GMT) on Monday, the yuan stood at 6.5825 to $1.0, down 0.35 per cent from Friday’s close.
“The yuan will depreciate gradually,” Song Yu, China economist for Goldman Sachs/Gao Hua Securities, told Bloomberg News. “The main driver for the decline would be a stronger dollar on the back of the expectation that the Fed will raise interest rates.”
US Federal Reserve Chair Janet Yellen last week implied that interest rates could be lifted soon.

China fixes yuan at over five-year low

AFP, SHANGHAI: Chinas central bank yesterday set the value of the yuan currency at a more than five-year low against the US dollar, according to the national foreign exchange market, in a pattern of weakness in anticipation of higher US interest rates. The Peoples Bank of China (PBoC) put the yuanalso known as the renminbi (RMB) -- at 6.5784 to $1.0, down 0.45 per cent from its fix on Friday, according to data from the China Foreign Exchange Trade System. The level was the lowest level since February 2011. China only allows the yuan to rise or fall two per cent on either side of the daily fix, one of the ways it maintains control over the currency. At 4:30 pm (0830 GMT) on Monday, the yuan stood at 6.5825 to $1.0, down 0.35 per cent from Fridays close. The yuan will depreciate gradually, Song Yu, China economist for Goldman Sachs/Gao Hua Securities, told Bloomberg News. The main driver for the decline would be a stronger dollar on the back of the expectation that the Fed will raise interest rates. US Federal Reserve Chair Janet Yellen last week implied that interest rates could be lifted soon.