Yuan breaks 7 per dollar mark for first time since July 2020, yuan’s fixing hit weakest in two years
FOREX
Yuan breaks 7 per dollar mark for first time since July 2020, yuan’s fixing hit weakest in two years
FOREX

Yuan breaks 7 per dollar mark for first time since July 2020, yuan’s fixing hit weakest in two years

 

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The onshore Chinese yuan on Friday breaks through 7 per dollar mark for the first time since July 2020, trading 7.0123 per dollar as of 9:40 am local time.

Before the market open, the People’s Bank of China (PBOC) cut the yuan’s fixing against the US dollar by 204 pips to 6.9305 per dollar on Friday, the weakest level since August 2020, compared to a fixing of 6.9101 one day earlier.

China’s yuan weakened past the key 7 per dollar level for the first time in more than two years as a fragile economy and strength in the greenback weighed on the currency.

On Thursday, the offshore yuan fell as much as 0.7% to 7.0186 per dollar, the lowest since July 2020, spurred by a rally in the greenback at the start of New York trading, as the latest US inflation data fuels bets for a large Federal Reserve rate hike this month that would further widen China’s monetary-policy gap with the US and drive outflows. The currency is also under pressure as Covid lockdowns and slowing exports growth hurt the economy.