Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2021 09 20T014056Z 1 LYNXMPEH8J015 RTROPTP 4 GLOBAL FOREX - Business Express
FILE PHOTO: A U.S. dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Evergrande jitters pull risk currencies lower, dollar gains on safety bid

(Adds details, updates prices; changes byline, dateline; previous LONDON)

By Chuck Mikolajczak

NEW YORK (Reuters) – The offshore Chinese yuan weakened versus the greenback to its lowest level in nearly a month on Monday, as worries about the fallout from property developer Evergrande’s solvency issues spooked financial markets and lifted safe-haven currencies.

Market sentiment has been rattled by the potential contagion from Evergrande, which is trying to raise funds to pay a host of lenders, suppliers and investors. A deadline for an $83.5 million interest payment on one of its bonds is due on Thursday, and the company has $305 billion in liabilities.

On Thursday, the yuan hit its highest level in three months at 6.4226 per dollar before starting to reverse as Evergrande’s woes worsened. The move sharpened on Monday after warnings from Chinese regulators that the company’s insolvency could fuel broader risks in the country’s financial system if not stabilized.

“We are seeing a classic flight to safety in the dollar until we get some sense of clarity on whether or not it is going to be an orderly or disorderly resolution to Evergrande,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington DC.

“We were likely to see a continuation of the decline we’ve seen in risk assets going into this week and you throw in Evergrande and it has really unsettled the markets.”

The dollar and other safe-haven currencies strengthened with the risk-off sentiment, which saw Wall Street’s S&P 500 index on pace for its biggest one-day percentage drop in more than four months.

The dollar index rose 0.03%, with the euro up 0.02% to $1.1727.

The dollar has also been gaining ground on expectations the Federal Reserve will begin reducing its monthly bond purchases this year, with the central bank’s policy announcement due on Wednesday.

Aside from the Fed, multiple central banks around the globe will hold policy meetings this week, including those of Sweden, England, and Norway.

The Japanese yen strengthened 0.46% versus the greenback at 109.47 per dollar, while sterling was last trading at $1.3659, down 0.60% on the day.

The Canadian dollar, also a commodity currency that correlates with risk sentiment, weakened to as low as C$1.2985 per dollar, its lowest level in four weeks.

Polling for Monday’s national election in Canada points to an advantage for incumbent Prime Minister Justin Trudeau but a likelihood that he remains leader of a minority government.

In cryptocurrencies, bitcoin last fell 7.52% to $43,693.24.


Currency bid prices at 11:52AM (1552 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Dollar index

93.2390 93.2230 +0.03% 3.621% +93.4550 +93.1850


$1.1729 $1.1726 +0.03% -4.01% +$1.1737 +$1.1700


109.4650 109.9800 -0.46% +5.95% +110.0350 +109.4400

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.


128.38 128.94 -0.43% +1.15% +129.0300 +128.1500


0.9282 0.9325 -0.45% +4.93% +0.9333 +0.9273


$1.3659 $1.3727 -0.49% -0.02% +$1.3740 +$1.3648


1.2820 1.2768 +0.41% +0.68% +1.2895 +1.2762


$0.7248 $0.7263 -0.21% -5.78% +$0.7268 +$0.7221


1.0887 1.0927 -0.37% +0.74% +1.0935 +1.0876


0.8585 0.8535 +0.59% -3.94% +0.8587 +0.8533


Dollar/Dollar $0.7023 $0.7035 -0.13% -2.16% +$0.7042 +$0.7006


8.7220 8.7120 +0.14% +1.60% +8.7805 +8.7105


10.2307 10.2008 +0.29% -2.26% +10.2815 +10.1995


8.6934 8.6787 +0.15% +6.05% +8.7459 +8.6644


10.1952 10.1804 +0.15% +1.18% +10.2336 +10.1755

(Reporting by Chuck Mikolajczak; Editing by Bernadette Baum)

Recent Post: