Yuan Posts Weekly Decline Amid Economy Concern, MSCI Rejection
- Brexit would pressure currency further, StanChart says
- Exchange rate volatility surged to highest since March
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The yuan posted its biggest weekly decline in a month, weighed down by weak economic data and MSCI Inc.’s decision to leave Chinese stocks out of its benchmark indexes.
Volatility in China’s currency market rose to an almost three-month high this week as the spot rate fell beyond a five-year low last seen during January’s turmoil. Official data Monday showed China’s fixed-asset investment in the first five months of this year trailed all 38 economists’ forecasts, while Britain’s possible exit from the European Union prompted haven demand.