Evergrande worries drag risk FX lower, dollar catches safety bid



* Yuan skids from 3-mth highs to 3-wk lows on Evergrande worries

* Dollar index at 4-week high on safety bid

* Risk/commodity FX hit

By Ritvik Carvalho

LONDON, Sept 20 (Reuters) - The offshore Chinese yuan skidded to three-week lows on Monday, dragging lower other risk and commodity currencies, while the safe haven dollar rose as worries about Chinese property developer Evergrande's solvency spooked financial markets.

Only on Friday, the yuan hit its highest level in three months at 6.4297 per dollar. The sharp slump in the currency on Monday came on the back of warnings from Chinese regulators that Evergrande's insolvency could spark broader risks in the country's financial system if not stabilised.

Evergrande has been scrambling to raise funds to pay its many lenders, suppliers and investors. A deadline for the company to make an interest payment to creditors looms this week.

The move in the yuan, which saw it fall to 6.4698 yuan per dollar - its lowest since August 31 - also dragged on the Australian dollar, New Zealand dollar, and Norwegian crown, which all hit levels at or near three-week lows.

The Japanese yen strengthened 0.2% to 109.72 yen per dollar , although that was not enough to stop the dollar index benefiting from a safety bid.

Against a basket of peers, the greenback was up almost 0.2% on the day and at its highest in four weeks. =USD Across the Atlantic, the euro was 0.15% lower on the day at $1.1707 by 0806 GMT.

"FX markets start the week on a nervous footing, where the biggest threats are faced from the travails of Chinese real estate developer Evergrande and Wednesday's FOMC (Federal Open Markets Committee) meeting," said Francesco Pesole, G10 FX strategist at ING.

"Today also sees a tight Canadian election, where a failure to get a clear result may not help a CAD already under pressure as the commodity complex feels the strain."

The Canadian dollar, also a commodity currency that correlates with risk sentiment, hit its lowest in four weeks at C$1.2815 per dollar.

Polling for Monday's national election in Canada points to an advantage for incumbent Prime Minister Justin Trudeau but a likelihood that he remains leader of a minority government.

CENTRAL BANK FOCUS

Ahead this week, no fewer than a dozen central banks hold meetings, but traders' top focus is on the Fed where expectations for a tapering signal are keeping the dollar bid.

The Fed concludes a two-day meeting on Wednesday and consensus is that it will stick with broad plans for tapering this year but will hold off providing details or a timeline for at least a month.

Creeping U.S. yields, however, which at the 10-year tenor rose for a fourth straight week last week US10YT=RR , point to risks of a hawkish surprise or a shift in projections to show hikes as soon a 2022, both of which could support the dollar.

"We suspect the Fed may be mildly hawkish in the sense that ... (it) is likely to raise its 'dots' signalling one rate hike next year and for PMIs to continue a tad lower. If so, euro/dollar will probably finish the week lower too," said Mikael Olai Milhøj, chief analyst at Danske Bank.

Among the other major central banks, the Bank of England is expected to leave policy settings unchanged, but traders see potential for gains in the pound if the bank adopts a hawkish tone or more members call for asset purchase tapering.

There is no expectation of policy shifts at the resolutely dovish Bank of Japan on Wednesday, but a day later Norway's Norges Bank is expected to become the first G10 central bank to lift rates.

Cryptocurrencies fell, with Bitcoin down over 5% at one point at $44,773. BTC=BTSP



World FX rates Link



Reporting by Ritvik Carvalho
Editing by Gareth Jones

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Ang iyong kapital ay maaaring malugi. Ang mga produktong naka-leverage ay maaaring hindi para sa lahat. Tingnan ang aming Risk Disclosure.