Offshore Yuan Declines on Bets PBOC Paused Market Intervention
- Central bank keeps fixing little changed for a fifth day
- Hong Kong dollar drops most since 2003 on yuan concern
Making Sense of the Chinese Markets
This article is for subscribers only.
The yuan traded overseas fell for the first time in six days on speculation a narrowing gap with the onshore rate dissuaded China’s central bank from stepping into the market to prop up the currency.
Yuan interbank rates in Hong Kong extended declines from record highs as well, indicating liquidity eased as local stocks sank below levels reached during last year’s rout. The Hong Kong dollar retreated by the most since 2003 as investors began to lose confidence in Chinese assets, while bond yields on the mainland fell to the lowest in data going back to 2007 on haven demand.