Offshore Yuan Falls Most This Week Since March on Fed Signals
- Dollar jumps this week as Fed signals possible June rate hike
- Yuan index won't fall much further to avoid currency war: DBS
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The offshore yuan posted its steepest five-day loss in six weeks as the dollar rebounded and investors speculated policy makers will guide the currency weaker amid a faltering economy.
The yuan weakened 0.4 percent against the dollar this week in Hong Kong. A Bloomberg gauge of the dollar is headed for its biggest weekly advance in six months after Federal Reserve officials suggested an interest rate increase could be on the table at the June meeting. An index tracking the Chinese currency versus 13 peers held within 0.1 percent of a 17-month low after private and official data for Chinese manufacturing released in the past week missed economists’ forecasts.