Yuan Basket Falls for Fourth Week as Euro, Yen Fixings Weakened
- Replica of CFETS Index drops to lowest since gauge introduced
- Policy makers favor lower currency as it helps exports: Mizuho
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The yuan fell against a trade-weighted basket for a fourth straight week amid speculation China’s central bank is guiding the currency lower against peers.
A Bloomberg replica of the CFETS RMB Index, which measures the yuan against 13 exchange rates, dropped this week to the lowest level since the official basket was unveiled in December. The People’s Bank of China raised its reference rate against the dollar this week, while lowering the fixings against the other main currencies including the euro, yen and British pound. Policy makers have pledged to keep the yuan stable against the basket.