The Chinese yuan reaches its lowest level in 11 years against dollar

11:34

Thursday, August 22, 2019

Cairo – Agencies:

BEIJING (Reuters) – The Chinese yuan fell Thursday to its lowest level in 11 years against the dollar because of worries about an economic slowdown, prompting Chinese state banks to support the currency on the dollar. forward market.

The rise in the yuan, combined with the decline in Hong Kong stocks as a result of worries about the protests in the city, has resulted in a drop in the New Zealand and Australian dollars and a strengthening of the yen against major partners.

The rest of the currencies were confined to a narrow range before the speech of Federal Reserve Chairman Jerome Powell at Jackson Hole, which will be closely scrutinized after a coup on the yield curve of the US Treasury that put in evidence the risk of a US recession.

Expectations for further rate cuts are high, and US President Donald Trump's public calls for vigorous monetary easing have wreaked havoc on the US central bank.

In domestic transactions, the yuan fell to 7.0752 against the dollar, its lowest level since March 2008, before recovering slightly to 7.0732. In foreign trade, the dollar rose 0.29% to 7,872 yuan.

Traders told Reuters that large Chinese state banks had backed the yuan.

The dollar was stable at 106.43 yen after gaining 0.36% on Wednesday, its biggest rise since August 13th.

Against the Swiss franc, the dollar traded at 0.9828 near a two-week high of 0.9831

The Australian dollar fell 0.32% to $ 0.6761 and 0.47% to 71.95 yen.

The New Zealand dollar fell to 0.6372 USD, the lowest since January 2016, and lost 0.66% to 67.84 yen.

The pound fell slightly to 91.46 pence for one euro and is headed towards losses for the second session, under the pressure of Britain's secession from the European Union on the currency.

Against the US dollar, the pound has changed little, at $ 1.2127.