China’s yuan advanced to a 19-year high after the central bank raised the currency’s reference rate by the most in more than six months amid speculation U.S. monetary stimulus will spur faster gains. Volatility surged.
China’s yuan rebounded from its biggest weekly loss since July after the government relaxed foreign investment rules and the central bank strengthened the daily fixing by the most in almost three weeks.
China’s yuan tumbled by the most on record on speculation the central bank will widen the currency’s trading band, allowing greater volatility at a time when growth is slowing in the world’s second-largest economy.
The euro rose to the highest level this year against the dollar as inflation in the currency bloc exceeded analysts’ estimates, damping speculation the European Central Bank will add to monetary stimulus next week.