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Yuan Nears Six-Year Low as Bears Seen Testing PBOC Tolerance

  • Central bank may have tried to limit drop Tuesday: analyst
  • Policy makers starting to loosen some control, Natixis says
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Are Fiscal Policy Measures Working?

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China’s currency fell toward a six-year low as yuan bears were seen testing the central bank’s tolerance for a weaker currency.

The exchange rate dropped as much as 0.16 percent in morning trade, taking it close to 6.7 against the greenback amid speculation that the People’s Bank of China will ease back on support now that a Group of 20 gathering in Hangzhou has ended. The decline Tuesday suggests that the monetary authority may be starting to loosen some control, according to Iris Pang, senior economist of Greater China at Natixis SA in Hong Kong.