Yuan Set for Longest Losing Streak in Two Years Post-IMF Entry

  • Currency has weakened every day since joining reserve basket
  • PBOC allowing drop now that SDR entry is done: RBS’s Trinh

Yuan Outlook: More Weakness Ahead?

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After joining the International Monetary Fund’s reserves basket on Oct. 1, the yuan has gone in one direction: Down.

The yuan fell 0.04 percent to 6.7201 a dollar as of 4:47 p.m. in Hong Kong, taking its eight-day loss to 0.7 percent. That’s its longest losing streak in more than two years. Onshore, the currency dropped to a six-year low. The central bank, speculated to have intervened to keep the yuan steady in the run up to IMF inclusion, set the daily reference rate weaker for a second day.