The big news of the day is that the People’s Bank of China fixed the Chinese yuan to its lowest level since March 2011.
The PBoC set the midpoint of its yuan fix at 6.5468 per dollar, down 0.34% from Tuesday.
This decision comes as the central bank looks to soften the blow of a potential Fed interest-rate hike. Members of the FOMC have hinted that the hike could come as early as June 15.
As for the rest of the world, here’s the scoreboard as of 12:14 p.m. ET:
- The euro is little changed at 1.1154 against the dollar after Greece and its creditors reached a deal. The deal opens the door for Greece to receive €10.3 billion from its creditors along with debt relief once the current deal ends in 2018. Separately, Germany’s Ifo Business Climate rose to 107.7 in May, up from 106.7 in April – the highest reading since December. The Russian ruble is stronger by 0.4% to 65.9475 per dollar as oil surges to a seven-month high. Brent crude oil is up 1.0% at $49.12 per barrel. The Canadian dollar is stronger by 0.3% at 1.3091 per dollar after the Bank of Canada held its key interest rate at 0.50%. Notably, the Bank also warned that second quarter growth is likely to be weaker in light of the Alberta wildfires, which have slashed oil production. The US dollar index is little changed at 95.46 after data showed that home prices rose more than expected, while the services sector sent warning shots suggesting possibly soft economic growth in the second quarter.