Economics
Yuan Tumbles to 11-Month Low as Band Widening Spurs Volatility
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The yuan sank to an 11-month low and options traders turned more bearish on the currency as China’s central bank doubled trading limits versus the dollar.
The onshore spot rate slid 0.45 percent to close at 6.1781 per dollar in Shanghai, China Foreign Exchange Trade System prices show. It slid as much as 0.51 percent to 6.1818, the weakest since April 2013. One-year options granting the right to sell the yuan cost 1.83 percentage points more than contracts allowing purchases as of 4:33 p.m. in Hong Kong, the biggest premium in six months, according to data compiled by Bloomberg.