Currencies

Dollar rises as markets turn eyes to Opec

European bourses are mirroring a tentative Asia session as the dollar continues to be supported by better US economic data and investors turn their attention to a meeting between Opec members. Sentiment is underpinned by US index futures suggesting the S&P 500 will gain 3 points to 2,207.3 when trading gets under way later in […]

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Banks

Basel Committe fail to sign off on latest bank reform measures

Banking regulators have failed to sign off the latest package of global industry reforms, leaving a question mark hanging over bankers who complain they have faced endlessly evolving regulation since the financial crisis. Policymakers had hoped to agree the contentious new measures at a crunch meeting held in Chile this week, but a senior official […]

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Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

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Economy

Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Financial

Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Categorized | Currencies

Offshore renminbi slumps to all-time low


Posted on November 23, 2016

A big downward move in the offshore renminbi is taking China’s currency closer to the landmark of Rmb 7 to the dollar.

The fall of 0.4 per cent sees the offshore rate to Rmb6.9439, a new all-time low. If follows China’s central bank setting the midpoint rate at a weaker level than Tuesday, reports Roger Blitz in London.

The renminbi’s weakness is part of the widespread falls experienced across the currency universe since Donald Trump’s election victory, as traders pile into dollars.

But the renminbi’s fall creates a different order of worry for the market, particularly the flight of capital out of China.

Hao Zhou, Commerzbank analyst, said the renminbi was “under great pressure again, and the market is possibly pricing in a wild movement early 2017”.

At BNY Mellon, macro-strategist Simon Derrick is worried that some of the China pressures that wobbled markets in January are re-emerging, notably the People’s Bank of China eating into reserves to prop up the falling currency and the spread in the onshore and offshore rates widening.