Offshore Yuan Drops Most in Five Months as U.K. Votes for Brexit
- PBOC injects most funds this week since April via operations
- Sovereign bonds rally as one-year rate swaps at two-month low
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The offshore yuan slumped by the most in five months and Chinese government bonds rallied after the U.K. voted to leave the European Union.
The yuan traded in Hong Kong slid 0.8 percent to 6.6402 per dollar as of 4:31 p.m., while the onshore yuan weakened 0.5 percent in Shanghai. The final count showed voters backing “Leave” by 52 percent to 48 percent. While the yuan’s drop in Hong Kong was the biggest since January, its loss paled in comparison with global currencies. The pound plunged more than 6 percent and the euro slid by the most since it was introduced in 1999.