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China yuan hits 8-month low against dollar
May 26, 2014, 5:22 am

The US Federal Reserve has begun to discuss options to raise interest rates as the economy improves [Xinhua]

The US Federal Reserve has begun to discuss options to raise interest rates as the economy improves [Xinhua]

The Chinese yuan hit an 8-month low against the US dollar on Monday in its central parity, on the expectation of an interest rate increase in the US.

The value of the yuan retreated 18 basis points to 6.1699 against the dollar, according to the China Foreign Exchange Trading System. This was the fourth consecutive daily decline and set a new low since September 6, 2013.

The US Federal Reserve has begun to discuss options to raise interest rates as the economy improves, according to the latest policy meeting minutes of the Fed’s Federal Open Market Committee released last week.

In China’s foreign exchange spot market, the yuan is allowed to rise or fall by 2 per cent from the central parity rate each trading day.

The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

 

Source: Agencies

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