Yuan Drops to Record Versus Peers Amid Bets PBOC Helping Exports
- A weaker currency makes more sense for China now: Commerzbank
- Onshore yuan heads for weekly gain against declining dollar
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China’s yuan dropped to a record low against a trade-weighted currency basket amid speculation policy makers are using recent dollar weakness to boost the competitiveness of the nation’s exporters.
A Bloomberg replica of the CFETS RMB Index, which measures the yuan against 13 exchange rates, fell to 93.78 Friday. That’s the lowest since the gauge was introduced in December. The basket usually declines when the greenback weakens because the yuan tends to rise less against the U.S. currency than its peers, said Harrison Hu, chief greater China economist at Royal Bank of Scotland Group Plc in Singapore.