Singapore dollar hits 5-year low after weak yuan fixing

[SINGAPORE] The Singapore dollar hit a fresh five-year low on Wednesday as China's central bank fixed its daily yuan mid-point weaker again.

The city-state's currency fell nearly 1 per cent to 1.4150 per the US dollar, its weakest since June 2010.

Singapore's dollar closely tracks the yuan as traders and analysts believe it is included in the undisclosed currency basket used by the Monetary Authority of Singapore to manage monetary policy.

The People's Bank of China set the mid-point rate at 6.3306 per dollar prior to market open, the weakest guidance rate for the currency since October 2012.

That hurt other Asian currencies with the South Korean won falling to a near four-year low.

REUTERS