China’s central bank on Tuesday, May 29, lowered its official Yuan midpoint to 6.4021 per dollar, its lowest in more than four months, as the dollar rose overnight following losses in the euro as investors took a grim view of Italy seemingly heading towards another election.
Tuesday’s midpoint was 59 pips or 0.1 percent weaker than the pervious fix at 6.3962, was the weakest since Jan 22.
Traders said Tuesday’s official fixing largely matched market expectations.
Meanwhile, the dollar firmed against a basket of major currencies overnight supported by the weakness in the euro. The global dollar index hit a 6-1/2-month peak of 94.496 on Monday night.
