The Canadian dollar dropped in Asia, then recouped its losses in Europe. A bout of risk aversion sentiment stemming from Chinese regulatory actions knocked the commodity currency bloc for a loop.
Chinese regulators banned companies that offer tutoring on school curriculum from going public or raising capital; listed firms may no longer acquire or invest in firms teaching school subjects. The move followed on the heels of regulatory actions against Chinese internet companies.
China also increased restrictions related to local state government financing vehicles, and the People’s Bank of China asked lenders to increase mortgage rates for first-time homebuyers.
The China Shanghai Shenzhen CSI 300 fell 3.22% to 4,925.30 on the news, which soured FX risk sentiment.
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