Yuan falls as regulators clamp down on China's banks

[dipsydoodle]

Source: Guardian

China's yuan suffered its worst loss of the year on Monday after authorities issued regulations limiting banks' positions as part of a campaign to crack down on hot money inflows.

Spot yuan was down by as much as 0.34% from Friday's close in afternoon trade, a huge fall by the standards of China's tightly controlled exchange rate, reaching a low of 6.1768 to the dollar.

The currency recovered somewhat in late trade to close at 6.1667, as the market digested the new regulations.

The State Administration of Foreign Exchange released new rules late on Sunday tightening limits on long yuan positions that banks can hold for their own accounts.

Read more: http://www.guardian.co.uk/world/2013/may/06/yuan-falls-china-banks