China’s Yuan Snaps Four-Day Rally as Greek Debt Crisis Worsens
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China’s yuan weakened, snapping a four-day rally, as Greece’s worsening debt crisis prompted investors to favor safe-haven assets such as the dollar.
Yuan forwards fell by the most in a week as the Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, rose 1.2 percent today after Fitch Ratings cut Greece’s credit rating by three levels on May 20. The People’s Bank of China set its reference rate 0.02 percent weaker at 6.4998 per dollar today.