China's central bank fixes yuan at 2011 low against dollar

China's central bank weakens yuan fixing to five-year low

China's central bank set the fixing of the yuan at a five-year low against the dollar on Wednesday, as the greenback continues to strengthen on expectations of an imminent increase in interest rates by the Federal Reserve.

The People's Bank of China (PBOC) set the dollar/yuan reference rate at 6.5693, against Tuesday's fixing of 6.5468. The fixing was the weakest for the yuan since 2011.

China's central bank lets the yuan spot rate rise or fall a maximum of 2 percent against the dollar, relative to the official fixing rate.

The dollar index, which measures the greenback against a basket of currencies, traded at 95.65 on Wednesday morning, compared with its previous close at 95.23. This was compared to the 94 level the index traded at in the previous week.

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