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Yuan Forwards Sink to Biggest Discount to PBOC Fixing Since 2008

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Yuan forwards are trading at the biggest discount to the official exchange rate in six years as China’s economic growth slows and the dollar surges amid expectations for higher U.S. interest rates.

Twelve-month non-deliverable forwards dropped 0.5 percent, the most since March 10, to 6.3482 a dollar on Thursday in New York, according to data compiled by Bloomberg. The contracts, which traders use to speculate on or hedge against moves in the yuan, are 3.6 percent weaker than the central bank’s reference rate, the most since December 2008.