The People’s Bank of China added 50 billion yuan ($8.2 billion) to the financial system today after a cash squeeze drove money-market rates to record highs, said Hao Hong, chief China strategist at Bank of Communications Co.
Investors are pulling money from emerging markets at the fastest pace in two years as slowing economic growth and the prospect of less global stimulus sink stocks, bonds and currencies from India to Brazil.
Yuan forwards fell the most since October 2011 after Federal Reserve Chairman Ben S. Bernanke said the central bank may reduce monetary stimulus that helped spur fund inflows to emerging-market assets.
Copper declined to a seven-week low as industrial metals dropped after Federal Reserve Chairman Ben S. Bernanke said bond purchases may be reduced and as China’s manufacturing is slowing. Nickel fell to the lowest since 2009.