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Libor Surge Reverberates All the Way to China’s Currency Market
- Higher borrowing rate encouraging firms to repay dollar debt
- U.S. benchmark has climbed to seven-year high amid reforms
LIBOR Surge Reverberates to China
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Add the dollar London Interbank Offered Rate to risks affecting the yuan.
A surge in the U.S. borrowing benchmark to a seven-year high is making it more expensive for Chinese companies to service $585 billion of dollar debt, encouraging firms to pay back their overseas loans and adding to pressure for the yuan to weaken.