LONDON: The U.S. dollar hit a fresh two-month high against the Japanese yen on Wednesday, while resource-related currencies such as the Australian dollar fell sharply against the dollar, as Chinese authorities guided the yuan even lower.
The U.S. dollar rose to 125.28 yen, its highest level since June 8, before weakening to Y125.24 around 0450 GMT. It was at Y125.13 late Tuesday in New York.
The Australian dollar fell to US$0.7244 and Y90.70 midday from US$0.7301 and Y91.39, respectively. The Australian dollar briefly touched US$0.7216 mid-morning, its lowest level since April 2009.
China further guided its currency lower Wednesday after it roiled markets Tuesday with its decision to push the yuan down 1.9% against the U.S. dollar, the largest devaluation in years. The People’s Bank of China set its yuan fix rate at 6.3306 a dollar, compared with Tuesday’s market close of 6.3231 and fix rate of 6.2298.
