China central bank fixes yuan/dollar midpoint at 4-1/2 year low after Fed rate hike

The People's Bank of China set its official midpoint rate at 6.4757 per dollar prior to the market open on Thursday, its weakest level since June 2011, and 0.2 per cent weaker than the previous fix of 6.4626.

PHOTO: REUTERS

DEC 17, 20159:32 AM

[SHANGHAI] The People's Bank of China set its official midpoint rate at 6.4757 per dollar prior to the market open on Thursday, its weakest level since June 2011, and 0.2 per cent weaker than the previous fix of 6.4626.

The sharply weaker yuan midpoint reflected the dollar's strength in global markets after the US Federal Reserve raised its policy interest rate overnight, traders said.

The dollar gained against the euro and yen on Thursday, rising after the Fed's decision to hike interest rates for the first time since 2006 lifted risk appetite and Treasury yields.

REUTERS