Offshore Yuan Records the Biggest Weekly Decline Since January
- Dollar rally, report of IMF enquiry weigh on Chinese currency
- Exchange rate is becoming more market-driven, analyst says
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The offshore yuan posted the biggest weekly decline since January, driven down primarily by dollar strength as well as a media report that suggested the IMF is pressuring China for more transparency on its currency-intervention methods.
A gauge of the greenback rose the most since November as Federal Reserve officials voiced support for higher interest rates. The International Monetary Fund is seeking data on the Chinese central bank’s holdings of forwards and futures, which some analysts say are used to cloak support for the yuan. The Wall Street Journal report prompted speculation policy markers will reduce intervention, said Tommy Xie, a Singapore-based economist at Oversea-Chinese Banking Corp.