The yuan tumbles in both onshore and offshore market as the US dollar index continue to climb.
The onshore yuan weakens by more than 200 pips, or more than 0.3%, against the US dollar to break through 6.81 mark and hit 6.8150 per dollar at one point.The offshore yuan tumbles by more than 250 pips against the dollar to hit 6.8291 at one point, approaching 6.83 mark.
Before the market open, the People’s Bank of China slashed the yuan’s fixing by 263 pips to 6.8065 per US dollar on Friday, the weakest level since September 30, 2020, compared to a fixing of 6.7802 in the previous trading day.
The US dollar index, which measures the value of the US dollar relative to a basket of global currencies, gained as much as 0.18% to hit 107.72, the highest since mid-July.
