US$ hit as yuan devaluation raises doubts over Fed hike

London

THE dollar fell 0.7 per cent against a basket of currencies on Wednesday, pulled down with Treasury yields by doubts over whether the US Federal Reserve will raise interest rates given China's devaluation of the yuan.

The yuan extended losses, dragging the growth-linked Australian and New Zealand dollars to six-year lows with it, while another set of weak Chinese data bolstered safe-haven currencies such as the yen and the Swiss franc.