Dollar buoyant; yuan wobbles after China cuts lending benchmarks

The US dollar rose generally on Tuesday and hit a seven-month high against the yen, while the yuan slipped after China cut two benchmark lending interest rates for the first time in 10 months. During Asia trade, the greenback peaked at 142.26 yen, its highest since November. The reduction of China’s one-year and five-year loan prime rates by 10bp as authorities look to shore up a slowing recovery in the second-largest economy did not impress National Australia Bank’s senior currency strategist, Rodrigo Catril. He argued: “What the market is really waiting for is for some concrete measures from the fiscal side in terms of spending”.