China's
foreign exchange reserves have fallen by a record amount after the
central bank spent heavily to support its currency's exchange rate
following a surprise devaluation.
The
central bank says the reserves declined by $93.9 billion to $3.557
trillion as of the end of August.
Beijing
spent heavily to support the yuan's exchange rate after the Aug. 11
devaluation that rattled global financial markets.
Currency
traders bet the yuan would fall further, putting downward pressure on
the exchange rate and prompting the central bank to intervene.
China's
yuan fell at the open on Tuesday after official data the previous day
showed that China's foreign exchange reserves dropped by a record
$93.9 billion in August.
The
People's Bank of China set the midpoint rate at 6.3639 per dollar
prior to market open, weaker than the previous fix of 6.3584, and
firmer than the previous day's closing quote 6.3659.
The
spot market opened at 6.3730 per dollar and was changing hands at
6.3673 in early trade, 14 pips away from the previous close and 0.05
per cent away from the midpoint. The spot rate is currently allowed
to trade with a range 2 per cent above or below the official fixing
on any given day.
Read More - Forex News
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