New York: China's yuan fell another 0.6 percent against the dollar Wednesday amid rising worries over the world's second-largest economy, while markets also got a chill from North Korea's claimed nuclear test.
With more turmoil around the world, the yen remained the safe haven of choice, rising to 118.49 against the dollar and 127.76 against the euro.
The dollar meanwhile slipped 0.3 percent against the euro, to $1.0782, after the Federal Reserve's minutes of its policy meeting in December revealed that some participants were worried about weak inflation and had only marginally supported a rate increase.
The bearish tilt of the minutes suggested a likely very slow pace of subsequent rate increases if inflation does not pick up, analysts said.
"The minutes clearly signaled an anxiety about low inflation -- so much that the decision to raise the target rate was a 'close call'," said IHS Global Insight in a client note.
"Many participants judged that falling energy prices and additional appreciation of the dollar would depress headline inflation longer than previously anticipated."
Meanwhile China's central bank let the yuan slip to 6.56 per dollar amid market expectations it could fall to 6.70 or lower.
AFP
