Offshore yuan hits record low, dollar near nine-month highs
China's yuan hit its lowest since offshore trading was introduced in 2010 on Tuesday as the dollar remained strong across the board, trading near a nine-month high on expectations for a U.S. interest rate hike by year-end.
The Chinese currency's fall of more than 1.5 percent since the end of September has prompted renewed suspicion among some in the market of a possible extended slide in the Chinese currency. It traded as weakly as 6.7882 yuan per dollar CHH=D3 on Tuesday.
The dollar was close to a nine-month high against a basket of currencies .DXY, having already risen 3.6 percent so far this month, as solid U.S. manufacturing activity and comments from a Federal Reserve official cemented U.S. rate hike bets.
China central bank deputy says yuan to be broadly stable: People's Daily
There is no basis for continuous depreciation of China's yuan currency, and the exchange rate will remain broadly stable, the deputy governor of China's central bank said in a newspaper editorial on Tuesday.
German Ifo Business Confidence Increases to Highest Since 2014
German business sentiment rose to the highest level in more than two years in October, signaling renewed growth momentum in Europe’s largest economy.
The Munich-based Ifo institute’s business climate index climbed to 110.5 from 109.5 in September. That’s the highest level since April 2014 and compares with a median estimate in a Bloomberg survey of economists of 109.6.
The report is adding to signs that Germany’s economy is overcoming a temporary slowdown. Manufacturing expanded at the fastest pace in almost three years in October as companies boosted hiring, partially in response to stronger foreign demand from the U.S and Asia, according to a survey of purchasing managers.
Oil Rises as OPEC Chief Barkindo Seeks to Resolve Output Plan
Oil climbed with OPEC’s secretary-general set to visit Baghdad on Tuesday for talks aimed at resolving a deal on output after Iraq said it should be exempt from planned cuts.
Futures rose as much as 0.8 percent in New York after falling 0.7 percent Monday. Mohammed Barkindo will meet with Iraq’s prime minister and oil minister, according to people familiar with the matter, after the Organization of Petroleum Exporting Countries’ second-biggest producer said Sunday it should be excluded due to conflict with Islamic militants. U.S. crude stockpiles rose last week, a Bloomberg survey shows before government data Wednesday.
Reference: Reuters, Bloomberg
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