Offshore Yuan Near Two-Month Low on Dollar Rally, Growth Concern
- Pessimism building as data show slowing economy, analyst says
- Spread with onshore rate widens to biggest since February
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The yuan traded in Hong Kong’s overseas market traded near a two-month low amid depreciation concerns as the world’s second-largest economy showed signs of a slowdown and the dollar rallied.
The offshore exchange rate’s discount to the price in Shanghai expanded to the widest in three months this week, suggesting sentiment toward the yuan is sliding among global investors. A gauge of the greenback rose 0.5 percent from May 6, extending this month’s advance to 1.9 percent, after four regional Federal Reserve presidents indicated the possibility of an interest-rate increase next month.