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Last Updated : Aug 11, 2015 06:09 PM IST | Source: PTI

Gold jumps to 3 week high

The central bank cut its daily reference rate by 1.9 per cent, triggering the yuan's biggest one-day drop since China unified official and market exchange rates in January 1994, adding to fears of another round of international currency devaluations in a bid to make exports more competitive.


Gold on Tuesday climbed to a three-week high as China's devaluation of the yuan spurred concern that other countries may intervene in the currency market. Gold climbed 1.4 per cent to USD 1,119.58 an ounce, the highest since July 20. Silver also surged 0.1 per cent to USD 15.26 an ounce.


China devalued the yuan by the most in two decades as policy makers stepped up efforts to support exporters.

The central bank cut its daily reference rate by 1.9 per cent, triggering the yuan's biggest one-day drop since China unified official and market exchange rates in January 1994, adding to fears of another round of international currency devaluations in a bid to make exports more competitive.

China's devaluation shook global markets just as the currency war appeared to be losing steam in Asia, with Australia and New Zealand toning down calls for weaker rates and Japan refraining from expanding stimulus this quarter.


Even with almost all major currencies losing ground against the dollar this year amid rising expectations for increased borrowing costs in the US, China maintained a de facto peg since March amid a push for the yuan to win reserve tatus at the International Monetary Fund.

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First Published on Aug 11, 2015 06:09 pm
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