The dollar depreciates against foreign currencies on concern China’s economy

The dollar depreciates against foreign currencies on concern China’s economy


In the afternoon the Euro / dollar exchange rate grew up to 1,1035 dollar. The dollar against the yen fell to 121,04 yen. On Friday the people’s Bank of China lowered the interest rate by 0.25 percentage points.

MOSCOW, 26 Jan. The dollar during trading Monday shows a decline in relation to world currencies on the investors ‘ concern over China’s economic health, according to AFP.

As at 13.31 GMT, the Euro against the dollar grew to 1,1035 with 1,1018 dollar dollar per Euro on Friday. The dollar against the yen fell to 121,04 yen per dollar with 121,45 yen per dollar at the previous closing. The dollar index (the dollar against a basket of currencies of six major U.S. trading partners) decreased by 0.21% to 96,89 item.

The people’s Bank of China on Friday lowered interest rate by 0.25 percentage points to 4.35%. Deposit rate thus reduced by 0.25 percentage points to 1.5%. The changes came into force from Saturday, October 24. From the same date in reserve requirements for Chinese banks reduced by 0.5 percentage point in order to maintain an acceptable level of liquidity in the banking system.

The decision of the Chinese regulator has raised concerns among investors over the state of one of the largest economies in the world. “The market is concerned that China had cut the rate because of the difficulty with economic growth,” said Bloomberg currency strategist at Australia & New Zealand Banking Group in Singapore Irene Chung (Irene Cheung).