The offshore Yuan hovered close to a month-low on Tuesday, whilst safe-haven currencies such as the Dollar benefited as investors safeguarded against a possible default by property developer China Evergrande.

 

The Yuan moved up around 0.1% to 6.4765 per Dollar after hitting 6.4879 on Monday, the lowest since 23 August.

“It feels like the market was waiting on something from the Chinese authorities over the weekend to calm the markets and ring-fence the contagion worries from a looming Evergrande default, and that didn’t come,” according to Chris Weston, head of research at brokerage Pepperstone in Melbourne.

“Traders sense a credit event is coming.”

Elsewhere, the Dollar had been edging up on forecasts the Federal Reserve will indicate a stimulus tapering timeline this  week.

The Dollar index – gauging the currency against six major rivals - was mainly unchanged at 93.176 after increasing overnight to 93.455, Reuters reports.

The Dollar stayed flat at $1.17325 per Euro, after reaching $1.1700 overnight. Whereas the Swiss Franc weakened to 1.08835 per Euro, remaining close to Monday’s high of 1.08750.

Moreover, the Yen fell around 0.2% to 128.555 against the Euro, lingering near Monday’s high of 128.155. Sterling edged up 0.13% to $1.3675 after dropping close to a one-month low of $1.3640 overnight, ahead of Thursday’s policy decision by the Bank of England.

The New Zealand Dollar lost 0.07% to $0.7026, slightly above the month-low of $0.7000. The Reserve of New Zealand Assistant Governor, Christian Hawkesby indicated the bank would hike rates in 25 basis point increments, rather than 50.

“NZD/USD has returned to its multi-month range after a failed break higher, and appears likely to correct even lower during the week ahead,” targeting $0.6890, said Westpac strategist Imre Speizer.