(MENAFN- Kuwait News Agency (KUNA)) The US dollar saw a rise in Tuesday's trading following China's announcement on reducing the exchange rate of its Yuan, in order to limit the loss in the country's exports.
Earlier today, the People's Bank of China (PBC) had announced reducing the exchange rate of the Yuan by 1.9 percent, to keep the Chinese currency stable.
The US dollar was stable against the Kuwaiti dinar at 303 fils, dropped against the euro to 1.0971 euros, rose against the Japanese yen to 124.75, while rising against other main currencies by four percent, leading its indices to rise to 97.524 points.
China is seeking to determine the Yuan as an official exchange reserve in the International Monetary Fund (IMF), as the country is aiming to develop its economy (the world's second largest), which has recently seen a slow growth rate.
The unstable Chinese economy had led to a drop in international commerce by four percent in the past six months. The Chinse economy is expected to grow by seven percent this year, while experts think it will keep seeing slow growth rates.
Earlier this week, the National Bureau of Statistics of China had released reports on a drop in prices of producers by 5.4 last July, which is the worst reading since October 2009.
The Chinese exports dropped to 8.3 in the same month, the biggest drop in the past four months due to a reduce in the international demand on Chinese products and the rise of Yuan.
Meanwhile, the Chinese imports had recorded a drop by 8.6 percent last July, while the annual consumer inflation rate is still stable at 1.6 percent, compared to 1.4 percent last June.
The US dollar had risen against the main currencies last night, with reports on a recovery in the job market released by the US last Friday may indicate a rise in interest rates. Moreover, the unemployment rate was unchanged at 5.3 percent, its lowest record in seven years.
The US dollar had went up recently, amidst expectations that the recovery of US economy would lead to a short-term raise in interest rates early September by the US Federal Reserve.
As for the euro zone, Greece is close to seal a third rescue plan agreement with its creditors, after concluding recent talks with those involved earlier this month.
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