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The Chinese yuan slid to a 16-year low against the US dollar amid the strengthen of the greenback and under pressure from a property slump, weak consumer spending, and shrinking credit growth in the world’s second-largest economy.
The onshore Chinese yuan weakens by 0.25% on Friday morning, Beijing time, to break through 7.34 per dollar mark and hit 7.3476 at one point, marking the weakest level in nearly 16 years.
The offshore yuan weakens by nearly 200 pips against the US dollar to break through 7.36 per dollar mark and hit 7.3618 at one point, also marking the softest level in 16 years.
The sharp weakening of the yuan came after the US dollar gained significantly bolstered by a still-resilient US economy that has defied expectations despite aggressive tightening by the Federal Reserve. Against a basket of currencies including the euro and sterling, the dollar rose 0.2% to 105.03, after earlier touching a fresh six-month peak.
More data on Thursday further pointed to an overall tenacious US economy. A separate report showed worker productivity in the second quarter was not as strong as initially reported, but still remained solid.
