LONDON—The offshore Chinese yuan skidded to three-week lows on Monday, dragging down other risk and commodity currencies as worries about property developer Evergrande’s solvency spooked financial markets, while the safe-haven dollar rose Only on Friday, the yuan hit its highest level in three months at 6.4297 per dollar. The sharp slump in the currency on Monday came on the back of warnings from Chinese regulators that Evergrande’s insolvency could spark broader risks in the country’s financial system if not stabilised. Evergrande has been scrambling to raise funds to pay its many lenders, suppliers and investors. A deadline for the company to make an interest payment to creditors looms this week. The fall in the yuan down to 6.4698 yuan per dollar—its lowest since August 31—also weighed on the Australian dollar, New Zealand dollar, and Norwegian crown, which all hit levels at or near three-week lows. The Japanese yen strengthened 0.2 …
Evergrande Jitters Pull Risk FX Lower, Dollar Gains on Safety Bid
September 20, 2021
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