China’s renminbi is sitting weaker after Moody’s Investors Services cut its credit rating on the country.
The offshore renminbi, which is traded outside the mainland and not subject to a daily trading band, narrowed early declines to be 0.04 per cent softer at a one week-low of Rmb6.8836 per dollar.
The onshore version of the currency, which trades 2 per cent either side of the central bank’s daily fixing, was 0.11 per cent weaker at Rmb6.8927.
The euro was flat at $1.1183 in Asia. On Tuesday, the single currency sank 0.5 per cent from Monday’s eight-month closing high despite the release of solid economic data from around the region.
The dollar index, a measure of the US currency against a basket of global peers, was fractionally lower at 97.38, but still hovering close to a six-month low. Minutes from the Federal Reserve’s May meeting will be released later today and may give hints about the prospects for a rate rise at the central bank’s June meeting.
The Japanese yen was 0.1 per cent weaker at ¥111.89 per dollar.