Investors seek out more hedging in futures market, says dealers

The recent tumble in the yuan exchange rate has increased risks in money trading and triggered more hedging from investors in the currency futures market, economists and foreign exchange dealers in Hong Kong said.

The yuan slipped 0.03 percent to close at 6.1402 per dollar in Shanghai, according to China Foreign Exchange Trade System prices. The currency has fallen 0.4 percent in three days and 1.4 percent this year. The People's Bank of China on Tuesday cut the daily reference rate by 0.02 percent to 6.1327, the lowest level since Dec 3.