Traders back away from risk after China tightens monetary policy

Investors started trimming their riskier exposure and headed for the refuge of the U.S. dollar after China caught markets off guard with a measure to tighten lending by banks. The People's Bank of China announced an increase of 50 basis points to its reserve requirement for retail banks. The euro, equities and commodities quickly came under pressure on international markets.

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Financial Times (tiered subscription model) · Xinhuanet.com (China)

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