Yuan weakens to break through 7.18 per dollar mark after PBOC cut benchmark lending rate

 

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Chinese yuan weakened sharply on Tuesday after the PBOC cut the benchmark lending rate LPR for the first time in ten months. 

The onshore yuan weakened more than 200 pips to break through 7.18 per dollar mark and hit 7.1803 at one point, before paring losses to trade at 7.1759. 

The offshore yuan also broke through 7.18 mark and hit 7.1855 per dollar at one point, before trading at 7.1789 per dollar.

Earlier on Tuesday, the PBOC slashed the yuan’s fixing by 395 pips to 7.1596 per US dollar on Tuesday, marking the weakest levels since November 30, 2022, and the biggest cut since March 16, 2023.