Emerging Market Asia FX Slides

The offshore renminbi touched 6.7921 per dollar,
its weakest since October 2010, while spot yuan in the onshore
market eased after the People's Bank of China set its daily
guidance rate weaker than the previous session.
  
    "The market is starting to get a bit nervous about further
weakness in the yuan, which could lead to greater capital
outflows," said Stephen Innes, senior FX trader for FX broker
OANDA in Singapore.
    "If this continues at a pace beyond what virtually everyone
forecast, I suspect there will be a spillover to the regional
currencies," Innes said.
    Singapore's dollar and South Korea's won 
are seen as more vulnerable due to their lower yields and 
sensitivity to China's currency policies, he added.

REUTERS

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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