Banks reduce foreign currency deposit rates

Industrial and Commercial Bank of China and Agricultural Bank of China will lower their interest rates for US dollar and euro deposits starting from next Wednesday, the two banks said on their websites.

The banks cut their interest rates for one-year US dollar deposits to 0.8 percent and cut the euro deposits rates to 0.7 percent.

Experts said the move reflects the changing outlook for the renminbi valuation.

As the US dollar and the euro appreciated against the renminbi in recent days, willingness to hold foreign currency has been on the rise, adding pressure to banks' related business.