Offshore Yuan Near Record Low as PBOC Seen Tolerating Declines
- Currency on mainland weakens beyond year-end median forecast
- Goldman warns outflows have risen to $500 billion this year
Why the Yuan is Testing PBOC's Tolerance Level
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The offshore yuan traded near a record low as Chinese policy makers signaled they are willing to allow greater declines amid a slump in exports and an advance in the dollar.
The exchange rate retreated 0.09 percent to 6.7765 a dollar as of 5:19 p.m. in Hong Kong, near a record low of 6.7850 reached Sept. 1, 2010. In Shanghai, the currency dropped as much as 0.17 percent to 6.7770, the weakest level in six years and well past the 6.75 year-end median forecast in a Bloomberg survey. The People’s Bank of China cut its daily reference rate by 0.2 percent to 6.7690.