Yuan Goes Down as Europe Saps Demand for Asian Assets

Yuan Goes Down as Europe Saps Demand for Asian Assets

The Chinese yuan fell today as the central bank set the reference rate for the currency lower for the first time in six day after the European leaders failed to reach an agreement about measures for fighting the debt crisis.
The European leaders were discussing yesterday the plans to issue joint euro-bond, but rejected that idea after all, making traders to question what exactly politician are going to do with the debt issues (and are they going to do anything at all). The concerns reduced demand for assets of Asian countries. The People’s Bank of China reacted to the news setting the fixing for the yuan 0.11 percent weaker at 6.3996 per dollar.
USD/CNY advanced from 6.3838 to 6.3882 as of 13:02 GMT today and reached earlier the intraday high of 6.3933.

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