HONG KONG, Sept 13 Borrowing rates for the
Chinese currency in the offshore market in Hong Kong fell
sharply on Tuesday after hitting seven-month highs in the
previous session as markets limped back to normal after volatile
The CNH Hong Kong Interbank Offered Rate benchmark
, set by the city's Treasury Markets Association,
was fixed at 2.838 percent on Tuesday compared with 5.5155
percent on Monday, the highest level since Feb. 19.
Offshore yuan borrowing rates have been elevated since late
last week, and market players have different theories on why.
Some say China's central bank pushed the borrowing rates higher
to dampen yuan short-sellers, and others believe it is just due
to short-term liquidity concerns.
The overnight rate is a benchmark for other interest rates
tied to the Chinese currency overseas.
(Reporting by Saikat Chatterjee; Editing by Richard Borsuk)