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Evergrande jitters tite risk currencies lower, dollar gains on safety bid for a safety

Evergrande jitters tite risk currencies lower, dollar gains on safety bid for a safety

  • Summary
  • Evergrande worries hit Yuan offshore.
  • Dollar index near a 1-month high on safety bid near 1st of highest quality dollar index as securing bids.

The offshore Chinese yuan weakened against the greenback on Monday to its lowest level in nearly a month, as concerns about the fallout from property developer Evergrande's solvency issues spooked financial markets and

Evergrande, which is trying to raise funds for a wide variety of lenders, suppliers and investors, is boosting the market sentiment. The company has three million dollars in debt on Thursday. read more.

The yuan reached its highest level in three months at 6.4226 per dollar on Thursday before starting to reverse as Evergrande's woes worsened. The move sharpened on Monday after warnings from Chinese regulators that the company's insolvency could fuel broader risks in the country'' financial system if not stabilized.

"We're seeing the classic flight to safety in the dollar until we see a certain point of clarity in Evergrande's orderly or disorderly resolution," said Joe Manimbo, senior market analyst at Western Union Business Solutions

"We were likely to see a continuation of the decline we saw in risk assets going into this week and you throw in Evergrande and it has really unsettled the markets."

The dollar and other safe-haven currencies strengthened with the risk-off sentiment, which saw the Wall Street index on pace for its biggest one-day percentage drop in more than four months.

The dollar index rose 0.03%, the euro averaging 0.002 points at $1.1727.

The dollar has been gaining ground on expectations that the Federal Reserve will begin to reduce its monthly bond purchases this year, with the central bank's policy announcement on Wednesday. read more about the dollar' as well as the recent repercussion

With the Fed, many central banks will hold policy meetings this week, including those of Sweden, England and Norway.

The Japanese yen grew 0.46% compared to the greenback at 109.47 per dollar, while the sterling was last trading at $1.3659, down 0.60% on the day.

The Canadian dollar, also a commodity currency that correlates with risk sentiment, weakened to 1,2985 dollars, the lowest level in four weeks.

Polling for Canada's national election this week indicates an advantage for incumbent Prime Minister Justin Trudeau but a chance he remains leader of senate groups.

In cryptocurrencies, bitcoin last fell 7.52% to $43,693.24.

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Currency bid prices at 11:52 (1552 GMT) (Sept.

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