Business / Markets

RMB drops to four-month low

( Updated: 2014-12-09 13:56

Renminbi weakened to four-month low as slower export growth overshadowed its rising trend and the US dollar advanced, reported China Business News on Tuesday.

Yuan fell 225 basis points to 6.1727 per dollar at spot rate enquiry on Monday. According to Bloomberg, the offshore currency declined 0.24 percent to 6.1747 in Hong Kong.

Export growth slowed to 4.7 percent year-on-year in November from 11.6 percent in October, official data showed on Monday. Imports contracted by 6.7 percent in November from growth of 4.6 percent in October.

In the first 11 months of the year, China recorded a trade surplus of $332.5 billion, up 42.2 percent year-on-year.

A gauge of the dollar strength headed for its highest close since 2009 after data showing a surge in US hiring strengthened the case for the Federal Reserve to increase interest rates, according to Bloomberg.

Recent clampdown against inflated export statistics in part explains the slowdown, said China Business News quoting a report by Goldman Sachs.

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