Yuan falls against greenback as Chinese markets re-open

Posted On: October 08, 2012
The Chinese yuan dropped against the U.S. dollar after one week of holidays, The Wall Street Journal reports.

Prior to the week-long observation of National Day, the yuan had pushed to its top level ever since the Asian nation depegged the currency in July 2005. Since the beginning of this year, the Chinese renminbi has gained 0.1 percent against the world's reserve currency.

"The dollar's level is quite low after its recent losses, so corporates who have demand for the dollar have started to buy," a Shanghai-based trader with foreign bank told the news source.

The yuan has gained 31.7 percent against the U.S. dollar since July 2005, when China adjusted its monetary unit against that of the U.S.

RTT News reports the service sector of the country hosting the globe's second largest economy developed more quickly in September than anticipated, according to Markit Economics.

The news is welcome for China as its economic hiccups and troubles inflicted by the sovereign debt crisis are believed to be threats to the global economy.

Category: Industry News

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