Yuan hits 4-1/2-month low in offshore trade

Wednesday, 30 December 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters - Offshore rates for China’s yuan fell on Tuesday to their weakest since a hefty two-day devaluation in August, mirroring a fall in onshore rates, with traders citing strong year-end dollar demand. yuan3-600

Sweden’s krona meanwhile hit a nine-month high against the euro as investors bet that the country’s economy would continue to improve and that its central bank would hold off from cutting interest rates further for the time being.

Trading was thin, however, with many traders away for the Christmas holiday season.

The dollar was 0.1% higher against a basket of major currencies ahead of U.S. house price and consumer confidence data, which is expected to show an increase.

“In a low liquidity environment, a potential improvement in a measure that foreshadows U.S. consumption could boost the dollar at least temporarily,” wrote analysts from broker IronFX.

The greenback strengthened around 0.2% against the yuan in offshore trading, to 6.5800 yuan. That was its strongest against the Chinese currency since Aug. 12.