Chinese Yuan At Near 5-year Low Against U.S. Dollar
January 04 2016 - 12:18AM
RTTF2
The Chinese yuan lost ground against the U.S. dollar on Monday,
after the People's Bank of China guided the currency lower by
fixing a weaker mid-point for the yuan to dollar exchange rate.
The Chinese central bank set the central parity rate of the yuan
at 6.5032 versus the U.S. dollar on Monday, the lowest level since
May 24, 2011. This may be compared to reference rate of 6.4936 set
on December 31. The central bank sets the central parity rate every
day and allows the currency to move upto 2 percent from that
level.
China's manufacturing sector continued to contract in December,
with PMI declining 48.2 in December from 48.6 in November, survey
data from Markit revealed.
The yuan declined to 6.5384 against the greenback for the first
since April 2011. At Friday's close, the pair was worth 6.4895. The
yuan is likely to find downside target around the 6.6 zone.
Trading in the Shanghai Composite index was halted by afternoon
after it plunged 6.9 percent on the first trading day of 2016. It
was the first time China used a newly launched circuit breaker
mechanism to curb market volatility.
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