China's yuan slumps to 5-1/2 year low vs dollar on Brexit aftershock

SHANGHAI: China's yuan slumped to its weakest level against the dollar since December 2010 on Monday as deep uncertainty buffeted global markets after Britain's vote to leave the European Union last week, traders said.

The yuan hit an intraday low of 6.6402 per dollar in early trade, down 0.2 per cent from Friday's close, also tracking the central bank's midpoint, which was fixed at 6.6375 on Monday - the lowest official guidance rate since December 2010.



The dollar index jumped nearly 1 per cent in early Asian trade on Monday as the British pound remained under siege, sliding back toward a 31-year low as sentiment towards the currency remained in tatters after Brexit.

China’s Premier Li Keqiang on Monday said Brexit has increased uncertainties in the global economy and reiterated China’s desire to see a united and stable European Union and a prosperous United Kingdom.

Li made the remarks during a speech at the World Economic Forum (WEF) in the northern city of Tianjin.

US Secretary of State John Kerry expressed regret on Sunday that Britain has chosen to leave the European Union and vowed Washington will maintain close ties with the bloc.



Kerry, who flies to Brussels and London today (Monday) for crisis talks with EU and British leaders, said the ideal of unity must remain paramount as Britain negotiates ‘Brexit’. “An EU united and strong is our preference for a partner to be able to work on the important issues that face us today,” Kerry told reporters during a visit to Rome.

Turmoil unleashed by Britain’s vote to leave the EU heightened anxiety in Asia on Sunday, with China, Japan and South Korea all fretting over the risk to world financial stability a few hours before markets reopen.